Tax Bill Passes. Drink Prices Rising.

In the Kentucky Senate, legislators just got the needed votes to pass the tax increase, which adds 30 cents to the price of a pack of cigarettes and 6 percent to the retail price of alcohol.

The C-J live blog says the 24th and clinching vote came at 11:02 from Sen. Ken Winters of Murray. Sen. Julie Denton of Louisville as among the few no votes, reasoning that the alcohol tax is unfair because it burdens only the counties that sell alcohol.

Reaction will be strong. Here’s a portion of a letter Indiana Rep. Baron Hill sent to the Brown-Forman Corp. this morning. (thanks to Francene!):

Frankly, I was perplexed to read media accounts of your company’s current struggle in Kentucky. While I would not presume to judge the actions of Kentucky state government, I will tell you as a lifelong Hoosier that Indiana values and promotes our signature home state businesses.

Let the backlash begin.

8 thoughts on “Tax Bill Passes. Drink Prices Rising.

  1. I’m no Baron Hill fan, but can’t blame him for making a pitch when the KY legislature slaps a signature industry. Bet Frankfort next tries to tax baseball bats.

  2. AB,

    I see your point, but I can’t recall any Kentucky public official making similar overtures to, say, Cummins when Indiana had its little property tax snafu a couple years ago.

  3. I think that the idea that applying a sales tax to all packaged alcohol products hurting Kentucky’s spirits industry is preposterous and even daffy. The price for our products are still the same for anyone outside of Kentucky, and nobody’s going to stop buying bourbon because of a 6% sales tax. Gimme a f-ing break!

  4. I think it’s ridiculous that people representing dry counties are allowed to vote to raise taxes on alcohol.

  5. What is interesting to me is seeing the comments such as “attacking” Kentucky’s signature industry. Of course they are attacking Kentucky’s signature industry for money.

    As usual the arrogance of the State politicians outweigh the realities of today’s financial times. Baron Hill may be an ass for wading in before the ink dries but that is the reality of how many states are doing business today.

    States have become as cut throat and competitive as private business anymore with revenue shortages to cover etc why wouldn’t they be?

    Interestingly enough I did not see the media types creating the same fuss when the State attacked the tobacco industry and went for the money thus causing backlash as well. Remember Philip Morriss and Brown Williamson?

    Funny how most went on a rant about low taxes on cigs and how we should tax them so much higher all hiding behind the “health” issue.

    Those were good jobs gone too. And of course since 60% of our local revenue comes from payroll taxes, according to Mayor Abramson own statements, then losing jobs due yto high taxation certainly does limit our options doesn’t it?

    Essentially, IMO, the arguments against the alcohol tax have merit but they mirror the same arguments used FOR the tobacco tax.

    Interesting indeed.

    For the record I am against this idiotic way of doing business by this State. you cannot tax yourself into prosperity.

    Until these idiots wake up and start living within our means no taxes will fix the problems they create.

  6. I can not imagine the thought process behind this legislation. We, as the people, need to remember this during the re-election campaigns. We must not forget injustice. This is our power and our right. Destroy these fools at the voting booth!!

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