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Liquor Tax Passed on to Consumers in Texas

The Texas Tribune encounters mixed reactions to a recently passed Texas liquor tax. Starting next year, restaurants and bars will see the taxes they pay on liquor drop from 14 percent to 6.7 percent. Meanwhile consumers will pick up part of the bill. While under the current system, consumers pay an 8.25 percent tax on beer and wine purchases, they got off scot free when buying cocktails. Starting next year, the 8.25 percent tax will be applied across the board.

Restaurant and bar owners argue this will put everyone on equal footing. (And surveys indicate those cocktail swillers didn't even notice they weren't paying a tax.) Per the Tribune, the new law will bring in $21 million in extra revenue for the state next year.

Who are the critics of the bill? Well, they are the consumers who are about to foot the bill and don't expect restaurants and bars to pass on their tax savings.
· Mixed Views on Increased Beverage Tax [Texas Tribune]
[Pistolero's, by Eric Sauseda]

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