The Conscience Of A Liberal Drinker

If you’re a regular reader of the Bulletin, you know I’m a economics junkie and my politics run to the more liberal side. So you probably won’t be surprised to learn I’m a fan of recent Nobel prize winning economist Paul Krugman, who also writes a column for the New York Times. I read his last two books (and the re-issue/update of his The Return of Depression Economics and the Crisis of 2008 is on my reading list). Jack Curtin, who appears lately to be hunkered down in his bunker/cabin in the woods doing nothing but blogging, passed along this little gem about Krugman’s vacation in Brugge. According to the Times, Krugman is in Brugge and had a beer dinner yesterday at Den Dyver. Den Dyver has a 3, 4 and 5-course fixed menu available with a beer paired with every course. I love that fac that he opted for the beer, good beer. Hey Draft magazine, I think you just found your next cover celebrity.
 

Krugman with his dessert beer.

 

Will Travel For Beer: The Next Session

Vacation season is just around the corner, and Gail and Steve from Beer by BART will be hosting next month’s Session, a.k.a. Beer Blogging Friday. Given that their blog focuses on how to safely travel from one beer destination to another, they’ve chosen the appropriate topic “Will Travel For Beer.” Here’s what they’re thinking:

If you just wrote or read about the trek to the furthest brew pub in the last round of the Session, and you immediately thought of other beer destinations near and far, we want to hear all about the good ones that didn’t quite fit the assignment! Tell us about that beer trip.

If you see the words “travel” and “beer” and instead of your best tourist sagas you think of work or logistics, we want to know your tips and strategies on the road. (Perhaps for getting prized bottles home.)

And if you haven’t done much travel for fine beer, either for work or pleasure, but you have a trip you’d love to do, tell us where you’d like to go seeking the experience and the community of beer. Who would you want to meet at your destination, who would your travel-mates be, and what would you most want to taste when you arrived?

Details please, whichever way you take this! You’re welcome to pull out the vacation slide show if you wish. By all means have a beer that reminds you of the trip, and describe it if you wish.

The next Session will take place on Friday, July 3, the day after what should have been America’s birthday and the day before the day we celebrate it. Where will you be traveling for the holiday weekend?

 

National Action Alert: Proposed Increase Of Federal Beer Tax

Proposed Increase of Federal Excise Tax A Serious Threat to Small Brewers and Your Beer Choice

Contact Your Senators Now

I received the following action alert from Support Your Local Brewery, a national, grassroots partnership of beer enthusiasts, professional trade associations and brewers dedicated to supporting and protecting the legislative and regulatory interests of small, traditional and independent craft breweries. Most action alerts are state by state and this is the first national one I’ve seen. They’re asking for everyone to contact their U.S. Senator, but especially those of you living in the following states:

Arizona, Arkansas, Delaware, Florida, Idaho, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Montana, Nevada, New Jersey, New Mexico, New York, North Dakota, Oregon, Texas, Utah, Washington, West Virginia and Wyoming.

The reason these states are so important is that’s where the Senate Finance Committee members are from, so it’s most important that they hear from constituents in their home states.

Here’s the information from the action alert.

Small brewers are facing an imminent and extremely serious threat to their businesses. The consequences of remaining silent have the very real potential of reducing your choice of beer and dramatically increasing the price of any beer that you purchase.

The Senate Finance Committee in Washington, DC is currently considering a proposal to increase and equalize the excise tax for alcohol beverages as part of healthcare reform deliberations. This proposal would triple the excise tax for 4.5% ABV beer and impose even higher excise tax rates for higher ABV beers.

If such a proposal becomes reality, there is no question that many small brewery businesses will suffer, some will close and consumers will face higher prices and diminished choice in the marketplace.
The Brewers Association brewery members and leadership have been actively engaged in building the case against an excise tax increase, recently submitting a letter to the Committee outlining our opposition.

We need you to speak out now. Today or tomorrow at the latest.

If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Your ask of them is simple:

Oppose the Tax Increase. Let them know that you oppose, in the strongest possible terms, raising the federal excise tax on beer because of the serious consequences it would have on small brewers and the craft beer they brew. Additional talking points appear below.

Once again: If one of your Senators sits on the Senate Finance Committee (roster of and links to members below), urge them to oppose this proposal in committee deliberations.

If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Take Action: Call and/or email your Senators’ Washington or district offices and make your personal case against this massive excise tax increase.

 

DEMOCRATS REPUBLICANS
MAX BAUCUS, MT
JOHN D. ROCKEFELLER IV, WV
KENT CONRAD, ND
JEFF BINGAMAN, NM
JOHN F. KERRY, MA
BLANCHE L. LINCOLN, AR
RON WYDEN, OR
CHARLES E. SCHUMER, NY
DEBBIE STABENOW, MI
MARIA CANTWELL, WA
BILL NELSON, FL
ROBERT MENENDEZ, NJ
THOMAS CARPER, DE

CHUCK GRASSLEY, IA
ORRIN G. HATCH, UT
OLYMPIA J. SNOWE, ME
JON KYL, AZ
JIM BUNNING, KY
MIKE CRAPO, ID
PAT ROBERTS, KS
JOHN ENSIGN, NV
MIKE ENZI, WY
JOHN CORNYN, TX

 

ISSUES OF IMPORTANCE TO SMALL BREWERS — EXCISE TAXES

Small brewers are small Main street businesses, typically employing 10 to 50 employees.

Small brewers represent only 4% of the entire U.S. beer market by volume, with 95% of them being very small businesses (producing 15,000 barrels or less per year).

We strongly oppose proposals to increase the excise tax on beer.

  • Proposals to increase and equalize the tax among all types of alcohol will tax small brewers at the highest rates because their specialty, gourmet and innovative beers typically have higher alcohol contents.
  • Brewers already pay a disproportionately higher share of taxes compared with other products – federal, state and local taxes represent over 40% of the retail price for beer while the same taxes equal nearly 24% of the price for all other purchases.

Higher taxes will worsen the economic recession – resulting in less competitive products, reduced sales and revenues, lost jobs and, for some small brewers, business closures.

  • $1 per case excise tax increase will typically cost the consumer at least $1.69 due to successive mark-ups as the case moves from brewer to wholesaler to retailer.
  • Many small brewers are struggling to deal with the consequences of the 2008 spike in ingredient and operational costs.

 

If you want some background on what’s going on with this, here’s where it started with a Senate Finance Committee roundtable in mid-May which then escalated to a written proposal on May 20. This increase is in addition to state excise taxes that breweries have to pay. There’s also additional information at Don’t Tax Our Beer and the Brewers Association’s Excise Tax Resources page.

If you care about the beer you drink and the many small breweries that make it, please take a few minutes out of your day to help keep it affordable and also keep some of them from possibly going out of business. Please reach out to your elected official in the U.S. Senate. They’re supposed to work for you, after all, let them know how you feel.

 

Oldest Brewery In Ireland Closes

I’m a little behind on this one, but thought it worth mentioning all the same. Last Friday, a week ago, the oldest brewery in Ireland was shut down. Heineken, who’s owned the Beamish & Crawford Brewery in Cork since last October, decided in December to close the brewery and move production elsewhere to cut costs. The brewery, located on South Main Street, has been making beer since 1690, making it Ireland’s oldest brewery. There had been talk of turning it into a museum, a plan endorsed by Cllr Brian Bermingham, The Lord Mayor of Cork. Its mock-Tudor counting house is already a “protected structure” and, according to The Independent, “the National Conservation and Heritage Group (NCHG) argued that the existing Beamish site offers an opportunity to create a tourism-heritage complex similar to the Guinness Storehouse in Dublin.” Heineken decided instead to sell it “on the commercial market” since they obviously couldn’t care less about the history of the place. Like any multinational corporation, they only care about short-term profit.

British beer writer Roger Protz has a nice summary of who’s owned Beamish over the past few decades, and how those events led to Heineken acquiring it last year.

While Murphy’s fell into the hands of Heineken, Beamish also had a turbulent life in the 20th century. In 1962 it was bought by the Canadian group Carling O’Keefe, which in turn was bought by the Foster’s lager group of Australia. This allowed Beamish Stout to be sold through Courage pubs in Britain as Courage was owned by Foster’s. Eventually Courage was taken over by S&N, which gave the brand little promotion in Britain but, incongruously, marketed it in France alongside its French subsidiary Kronenbourg.

Abut 120 jobs will be lost and production will be moved across town, to what for most of its existence was known as the Lady’s Well Brewery, also owned by Heineken, where they make Murphy’s Irish Stout.

 

Cross-Border Beer Buying

While looking through the information at the Tax Foundation today I came across a very interesting article and a study about cross-border sales of beer and tobacco and how it effects tax revenues. It’s not something I thought much about or figured had that much impact but the study, done ten years ago, seems to suggest otherwise. Essentially, what happens is that between state borders, people either living near them or happen to be traveling through them will purchase items in the other state, the one where the taxes are less, making the products themselves less expensive. I hadn’t thought about this phenomenon in a long time, but I recall that as a kid, my stepfather — a heavy cigarette smoker — had people bring him cartons of cigarettes back from southern states where, presumably, the taxes were so much cheaper that the cost of a carton of smokes was worth the effort of buying them in another state and hauling them back to Pennsylvania. And I’ve heard in some states, particularly on the east coast where they’re closer together, people would travel across state lines to buy a car for the same reason though as I understand it most states have enacted laws to make that practice not work anymore.

How this relates to beer is that in states where the excise tax differs greatly from a state bordering it, the price of beer can likewise be pretty dramatically different between those states, primarily because the base tax gets marked up along the distribution chain so the difference in the tax is magnified. That makes it susceptible to cross-border buying resulting in lost sales and tax revenue for the state with the higher tax rate. How much of a problem could this be? I confess I was initially skeptical, but the study, How Excise Tax Differentials Affect the Cross-Border Sales of Beer in the United States, done by the Tax Foundation in 1999 found that nationally it resulted in nearly $35 million in “lost sales & excise tax revenue.” That certainly sounds like enough that it should give any state pause before jacking of their state’s excise tax rate on beer. It’s just one more reason why raising a state’s beer tax might be a losing proposition economically.

Here’s an excerpt from the abstract for the study:

Cross-Border Shopping for Beer

While the study measures cross-border shopping in every state, the results are naturally most dramatic along borders where the tax differential is high. For example, Washington state, which levies a statewide 6.5 percent sales tax, additional local sales taxes and a $7.172 per barrel beer excise tax, shares a border with Oregon, which levies no state or local sales taxes and has a state beer excise of just $2.60 per barrel.

Huge quantities of beer cross the border in these circumstances, but this migration of economic activity affects more than just sales and product-specific excise tax collections. Cross-border shopping affects income and property tax collections, license fees, and a host of other sources of government revenue.

Policymakers are frequently surprised by the magnitude of the revenue effects, and such surprises can be particularly unnerving when the government in question is required to maintain a balanced budget.

According to the study, California alone lost $5,248,466 for the year studied. The conclusion seems fairly unambiguous, here are the last two paragraphs:

The per capita sale of packaged beer varies widely by state. It has long been suspected that these differences are due in part to cross-border shopping. Building on earlier work in this area, this study sought to explain differences in packaged beer sales among the states. A model of demand for beer and its supply by source was constructed. This model was created in a manner that allowed it to capture the effects of both interstate and Canadian cross-border shopping on beer sales in the states.

The model was then tested empirically using data from 1990–1997. Cross-border shopping was found to have significant effects on packaged beer sales in the states. In particular, the study found that in 1997, 18.1 million cases of beer, on net, moved from low- to high-tax states. Such exports accounted for approximately 2.0 percent of sales in net exporting states and allowed them to export $18.8 million in sales and beer excise taxes to their high-tax neighbors. In addition, states along the U.S.-Canadian border were able to export 10.9 million cases of beer and $14.6 million in sales and beer excise taxes to Canada. The study clearly shows that high sales and excise tax differentials lead to significant increases in cross-border beer sales.

The pull-quote that lawmakers should pay attention to is that by being too heavy-handed with imposing higher excise taxes on beer, it just might backfire to the point where it’s actually counter-productive and even reduces the amount of taxes collected. It could, it appears, actually wreck a state’s economy

Policymakers should be aware that the effects of cross-border shopping on income taxes, property taxes, and license fees can match or even exceed the revenue changes in state and local sales and excise taxes measured by the model.

The study is long and complex, but worth your time if you’re in a position to speak with or write to a state lawmaker, or if you’re a geek for this stuff like me. It’s 24 pages and is available as a pdf file.

 

 

Beer Excise Taxes By State

I found this nice map of the 50 states with the individual beer excise tax brewers in each state has to pay in addition to the federal excise taxes at Charlie Papazian’s blog, too. It’s originally from Don’t Tax Our Beer, a website maintained by the Tax Foundation.

The map provides an interesting snapshot of all the states. It’s worth noting that all the southern states have high excise taxes on beer, where the idea of drinking being sinful is, I think, more prevalent.
 

 

Sin Tax Tyrannies

There’s an interesting opinion piece at the Christian Science Monitor by Patrick Fleenor, who’s the chief economist for the Tax Foundation. It’s called The Tyranny of Taxing ‘Sin’. There’s some good stuff there, but here’s my favorite part:

Fleecing the minority is made much easier by an army of busybodies who make a comfortable living feeding “studies” to the media, proclaiming that Americans eat the wrong foods, drink the wrong beverages, don’t exercise enough, and are generally sinful. These modern-day Carrie Nations’ denunciations of nearly every commonplace pleasure — from Girl Scout Cookies to movie theater popcorn — are fodder for the nightly news.

To dispel the notion that their sin taxes go too far, the nanny-staters rely on a clever sleight-of-hand: Instead of pitching the tax as a punishment for sin, they claim they’re merely compensating society for costs imposed by bad habits. These claims are often unsupported by science, but many media repeat them without question.

That’s certainly true of the neo-prohibitionists, who keep insisting that vague alcohol-related “stuff” accounts for an enormous cost burden for taxpayers, but the supporting evidence I’ve seen for that is either non-existent or ludicrous at best. Yet the media repeats that endlessly and people comment here trying to asset is as a fact, too.

 

Montana’s Victory & More

There’s a nice round-up on Charlie Papazian’s blog about some current state legislation around the country, for example some good news out of Montana, similar to Alabama’s news two weeks ago:

Montana just passed a law which will allow beer to be up to 14% alcohol by volume (before it was max at 7% by weight, about 8.75 % by volume), effective in October. That new limit is conditional.The beer must be built 75% from malted cereal grains, if above 8.75% by volume. If over the 8.75% and less than 75% from malted cereal grains, the beer must be sold in liquor stores.

That’s followed by a summary of pending issues at various states and some interesting tax information, too.

 

The Personality Of Pint Glasses

The Walkabout pub chain, consisting of fifty Australian-themed bars in Great Britain, hired psychologist Dr. Glenn Wilson to research the drinking habits of their patrons. While I’d never heard of him (hardly a measure of fame), he’s apparently “best known for his work on attitude and personality measurement, sexual attraction, deviation and dysfunction, partner compatibility, and psychology applied to performing arts. In 2001, Wilson was ranked among the 10 most frequently cited British psychologists in scientific journals.”

For the project, Wilson observed 500 people drinking in a pub, and specifically the way they held their glass, and from that “divided them into eight personality types.” Despite his apparent credentials and success in his field, the study hardly seems scientific. It was done at the behest of a pub chain, most likely to create publicity, which it’s no doubt dones as it’s been covered by the BBC, the Daily Mail and the Telegraph.

Dr Wilson said: “The simple act of holding a drink displays a lot more about us than we realise – or might want to divulge.

“When Hillary Clinton was on the campaign trail in the US, commentators picked up on the fact that she used her left hand to raise a pint, even though she’s right-handed.

“She might just have been posing for a shot but some people suggested that it was an insincere gesture.

“The next time you’re in a bar, it might be worth thinking about what you’re saying to the people around you just by the way you’re holding your glass.”

So it’s a little silly, and not exactly well-settled, peer-reviewed, tested science despite being done by a psychologist of good repute. Still, it’s not without interest. Below are the eight personality types and how each are described.

 

The Pint Glass Personality Types

  1. The Jack the Lad
  2. The Brow Beater
  3. The Ice Queen
  4. The Gossip
  5. The Wallflower
  6. The Flirt
  7. The Fun Lover
  8. The Playboy

1. The Jack the Lad: This “peacock” is conscious of his image and will drink a bottled beer, or cider. Inclined to be confident and arrogant, he can be territorial in his gestures, spreading himself over as much space as possible, for example, pushing the glass well away from himself and leaning back in his chair. If he’s drinking with his mates, he would be unlikely to welcome approaches from outside the group, unless sycophantic and ego-enhancing.

Celebrities: Peter Andre, David Cameron, Jason Statham. The “ladette” (e.g. Lily Allen) is a female approximation to this male archetype.

2. The Browbeater: This rather pugnacious type is again mostly male. He prefers large glasses, or bottles, which he uses as symbolic weapons, firmly grasped, and gesticulating in a threatening, “in the face” kind of way. Something of a know-it-all, he comes across as slightly hostile, even if only through verbal argument, or jokes targeted at others. He should be approached with great care, or not at all.

Celebrities: John Prescott, Russell Crowe (with Naomi Campbell as a female equivalent), Gordon Brown.

3. The Ice Queen: This is a mainly female type whose natural style is cold and defensive. She drinks from a wine glass, or a short glass, which is held firmly in a barrier position across the body so as to deter intimate approaches. It is usually a waste of time approaching this woman; she may be ready with a castrating put-down.

Celebrities: Victoria Beckham, Debra Barr (from The Apprentice)

4. The Gossip: This (mainly female) drinker tends to cluster in all-female groups talking about other people, and can be critical. She holds a wine glass by the bowl and uses it to gesticulate and make points in conversation. She is inclined to lean over her drink, in towards others so as to speak confidentially. This person already has a close-knit social group with little inclination to extend it, therefore advances from outsiders are not usually welcome.

Celebrities: Kate Moss, Sadie Frost.

5. The Wallflower: This is a shy, submissive individual who holds the glass protectively, not letting go, as though afraid somebody will take it away. Palms are kept hidden and the glass is used as a social crutch – the drink is never quite finished, with a mouthful left in case of emergency. The drink is small (maybe half a pint of lager for a man). It may be drunk through a straw, which is fidgeted with, and used to stir the drink between sips. The style and pace of drinking is an echo of those around them (very little is initiated). This individual needs to be approached in a gentle, sensitive way, with perhaps a few understated compliments to build self-confidence, but may eventually warm to overtures.

Celebrities: Scarlett Johansson, Natalie Portman

6. The Flirt: Usually a woman, who holds her glass with dainty, splayed fingers and uses it in a provocative way. She may position it over her cleavage so as to draw attention to her attributes or peer over the rim to make eye contact when taking a sip. She may “tease” the rim of the glass with her finger, perhaps dipping it into the drink and sucking it dry. Assuming her agenda is appealing, the best way to approach is with reciprocal flirtatious gestures.

Celebrities: Jordan, Paris Hilton, Kate Walsh (from The Apprentice)

7. The Fun Lover: This type of drinker may be a man or a woman, who drinks to be sociable and values togetherness. A convivial individual, he / she enjoys being with their friends, and likes a laugh. Swigs taken from bottled drinks are short, so they don’t miss out on chipping in with the conversation. The bottle is held loosely at its shoulder for ease. This type of person is always happy to extend their social circle. The best way to approach them therefore is to leap directly into light, good-humoured conversation and make them laugh.

Celebrities: Sarah Harding, Helen Chamberlain (from Soccer AM)

8. The Playboy: This man is the active, self-confident, Don Juan-type seducer. He uses his (usually long) glass or bottle as a phallic prop, playing with it suggestively. He is inclined to be possessive, and can be tactile with his female companions.

Celebrities: Russell Brand, David Walliams

 

Stop The Presses! People In H.S. Drink!

There’s a tempest in a teapot brewing at New Trier Township High School, located a little over 22 miles north of Chicago along Lake Michigan. In the newly published senior yearbook for the class of 2009, apparently somebody slipped in an unauthorized photo of two girls hugging. But look closer and you can just barely see — gasp — a can of Pabst Blue Ribbon held behind the back of one of the girls.


 
Oh, the humanity. You’d think they just witnessed a murder to see the hue and cry this “incident” has caused. The local news is painting the story as if a serious crime had been committed. Talk about overreacting. Sheesh. There are even discussions in the press about the contrast in photo quality between the offending snapshot and other more professional looking photos found elsewhere in the yearbook. Geez, it’s the smoking photo, the Zapruder picture. “School spokeswoman Laura Blair told the Chicago Tribune that the photo was not in the yearbook when the adviser cleared it for publication, indicating someone sneaked it in afterwards. Blair says ‘it’s clearly defiant and subversive and intentional.’” Really, it’s clearly intentional? I don’t think it’s much of a stretch to imagine focusing on the girls’ faces and not even noticing the can at all.

From an article on the website of Chicago NBC affiliate:

“Clearly, the content of the picture and its inclusion in the yearbook are contrary to our principles and values as a school community. Administrators are investigating how and why the inappropriate picture was included, and we will take appropriate disciplinary action when we find the responsible individuals,” said Supt. Lina Yonke of the New Trier Township High School District. Possible consequences for the students involved could range from a school suspension to charges of underage possession of alcohol.

“Contrary to our principles and values as a school community,” what does that even mean? If teenagers drink — and obviously they do — isn’t that a part of the true values of the school community? In another story, the superintendent told a reporter it essentially ruined the whole yearbook. Really? It’s as if the school officials just discovered that the little angels in their charge might not be exactly as obedient and subservient as they believed, I guess preferring the fantasy that the kids in their school never did anything they weren’t supposed to do. For them, I have tell them that teenagers do drink, sorry to burst your bubble. It’s hardly newsworthy.

At least one Chicago Tribune columnist was able to keep it in perspective. Eric Zorn wrote a short piece, entitled Memo to New Trier High School administrators: Chill, concluding, “I have an idea: How about a wag of the finger and a reproachful shake of the head? They deserve it and so, actually, do you.”

But this story is all over the internet, especially in the local area. It must have been a very slow news day. But this is also a prime example of how the media overplays covering alcohol in society. A non-story is turned into a media circus. There was another photo also “sneaked” into the yearbook of a student shooting the finger, but that barely got a mention in only a fraction of the total stories on this incident.

 

View more news videos at: http://www.nbcchicago.com/video.