Save Lives and Reduce Harm by Raising the Beer Tax Michigan Legislative Black Caucus September 19, 2017

Since 1966, Michigan has imposed a tax of $6.30 per 31-gallon barrel. This equates to about 1.9 cents per 12-ounce can or 20 cents per gallon. As of 2014, there were 27 states with a beer tax higher than Michigan

We can create a healthier and safer Michigan by raising the beer tax. Research demonstrates that increasing the tax on beer will result in: substantial reductions in underage drinking reductions in the consumption levels of heavy drinkers fewer alcohol-impaired driving and alcohol-related traffic crashes and deaths a reduction in sexually transmitted infections fewer incidents of violent crime, including homicide, assault, robbery, and rape a reduction of mortality from liver cirrhosis

Excessive Alcohol Consumption Is Expensive Excessive drinking cost Michigan $8.2 billion in 2006 Michigan government paid $3.5 billion (43% of the total cost) It’s been estimated to cost $2.16 per drink and up to $814 per person. Binge drinking and underage drinking combined made up 84% of these costs, adding up to over $6.9 billion. These costs included ambulatory care and treatment services, productivity losses(such as absenteeism or premature death), and alcohol related motor vehicle crashes. http://www.michigan.gov/documents/mdch/Michigan_EAC_Costs_2006_FS.Final_432935_7.pdf

Alcohol Prices and Consequences taken from Frank Chaloupka Presentation June 10, 2016 Econometric and other research shows that higher prices for alcoholic beverages significantly reduce: Deaths from liver cirrhosis, acute alcohol poisoning,alcohol-related cancers, cardiovascular diseases, and other health consequences of excessive drinking Violence (including spouse abuse, child abuse, and suicide) and other crime Other consequences of drinking, including work-place accidents, teenage pregnancy, and incidence of sexually transmitted diseases Source: Chaloupka, 2009; Wagenaar et al., 2010

Alcohol Prices and Consequences taken from Frank Chaloupka Presentation June 10, 2016 Recent systematic review concluded: Doubling of alcohol taxes would reduce: • Alcohol-related mortality by 35% • Traffic crash deaths by 11% • Sexually transmitted disease by 6% • Violence by 2% • Crime by 1.4% Source: Wagenaar et al., 2010

Organizational Supporters Include: Changing Live and Staying Sober (Detroit) Coalition for Healthy Youth and Families Detroit Wayne Mental Health Authority DWMHA Faith-Base Coalition DWMHA Suicide Prevention Coalition Love Detroit Youth Coalition Michigan Alcohol Policy Promoting Health and Safety Michigan Council on Alcohol Problems Michigan Prevention Association West MI Association of Recovery Residences American Medical Association; CDC; World Health Org.

Michigan citizens support raising the tax on beer. EPIC-MRA conducted a 2016 statewide poll asking respondents if they would support or oppose legislation to increase the tax on beer? Seventy five percent of these respondents strongly or somewhat supported legislation to increase the tax on beer if the extra revenue raised were designated for substance abuse prevention and treatment programs. Every category of respondent [gender, political party (including tea party), region of the state, and age] favored an increase.

In September of 2016, Rep. Thomas Hooker from Kent County introduced legislation to raise the beer tax about 5 cents per 12 oz serving. Rep. Hooker was term limited. His legislation HB 5873 proposed all of the following, but did not get a hearing.

HB 5873 Would have indexed the beer tax to inflation. The Michigan beer excise tax was last changed in 1966 and has lost 86% of its value. If the tax had kept pace with inflation, instead of 0.20 per gallon, it would be $1.42 per gallon. A can of beer would cost about eleven cents more

Would have earmarked 100 percent of the increase in beer tax revenues to go to prevention, treatment, law enforcement, and recovery support services. Since 1995 general fund revenue allocations to substance use disorder services have dropped from 34 million to 16 million (2013). In 2014, the tax on beer in Michigan generated about $39 million dollars with the proceeds going to the general fund.

Revenues were to be allocated for prevention, treatment, recovery support, and enforcement of underage drinking/drinking and driving: OROSC 60% State Police 1% OHSP 3% MLCC 4% SCAO – Drug, DWI/Sobriety, Veterans Courts – 4% Dept.of Corrections – 3% Children’s Trust Fund – Early Childhood, Prevention and Education – 5.5% Military and Veteran Affairs and their families (Prevention, treatment, recovery support)– 4% DNR – Enforcement .5% %%

Also, these organizations... Secretary of State for Ignition Interlock Program – 1% Dept. of Education for model curriculum and counseling services to support intervention, treatment, and recovery support – 3% Behavioral Health and Developmental Disabilities Administration to prevent Fetal Alcohol Spectrum Disorder HHS to contract with governmental or private organizations that provide substance use disorder prevention services or substance use disorder treatment and rehabilitation services, or both, 7%.

Under this proposal, the beer tax would have generated approximately $60,000,000 It would also have generated $3,010,000 more in sales tax, which would go to the general fund along with the excise and sales tax that has been generated since 1966.

Alcohol Tax Increases Who Pays in Michigan Alcohol Tax Increases Who Pays in Michigan? taken from Frank Chaloupka Presentation June 10, 2016

Michigan Coalition to Raise the Beer Tax Formed after introduction of HB5873 in September 2016. Conference calls the fourth Monday of the month from 10:00 a.m. – 11:15 a.m. The next call is Monday, September 25.

Bottom Line: Raising Taxes on Alcohol will Bottom Line: Raising Taxes on Alcohol will Save Lives and Reduce Alcohol Related Harm. Looking for Legislative Champions to introduce a bill that would increase taxes on beer and/or spirits and wine.

Alcohol-Related Health Disparities The following info. Taken from Alcohol Justices’ fact sheet, “Alcohol-related Health Disparities” In St. Louis and Atlanta, researchers found more billboards advertising alcohol in African American neighborhoods than in other neighborhoods. In New York City, African American females in Central Harlem were at 13% higher risk than Whites of being a problem drinker due to their exposure of outdoor alcohol advertisements in their community.

Alcohol-Related Health Disparities “In general, Hispanics and Blacks have higher rates of complete abstinence from alcohol than non-Hispanic whites and other groups. But those who do drink consume more alcohol and often have higher rates of binge drinking.” Alcohol and health consequences “Cirrhosis death rates are very high among white Americans of Hispanic origin, lower among non-Hispanic Blacks, and lower still among non-Hispanic whites.” “Hispanics and Blacks have a higher risk for developing alcohol-related liver disease than whites.” Source:https://www.niaaa.nih.gov/alcohol-health/special-populations-co-occurring-disorders/diversity-health-disparities. Accessed 6/5/17.

Alcohol-Related Health Disparities The following taken from Alcohol justice Fact Sheet. Although non-whites consume less alcohol than Whites, they experience higher levels of negative consequences from drinking because of higher poverty levels, unfair medical treatment, and racial/ethnic stigma. In 2009, one in seven (14.2%) African American adults were in need of alcohol treatment. African Americans females and males both have higher rates of cirrhosis than their White counterparts.

Alcohol-Related Health Disparities The following taken from Alcohol justice Fact Sheet. Highest Rate of Current Alcohol Use: 56.1% white 47.5% more than one race 44.7% American Indians and Alaska Natives 42.1% Hispanics 39.3% African Americans 35.2% Asian Americans

For More Info on Health Disparities See hand out entitled, “Alcohol-related Health Disparities from Alcohol Justice. www.alcoholjustice.org

Active Alcohol Licenses as of 6/5/17. Wayne County 2,599 active licenses City of Detroit About 1,002 Minority groups are disproportionately exposed to alcohol advertising compared to Whites. Source: Taken from Alcohol Justice fact sheet, “Alcohol-related Health Disparities.”

Questions/Comments Marsialle Arbuckle – 313-340-3101 marbuckl@Hotmail.com Marie Hansen – 517-230-7884 michiganalcoholpolicy@gmail.com Mike Tobias - 517-803-5586 miket@preventionnetwork.org