Gov. Schwarzenegger Proposes Wine Tax Increase

SACRAMENTO (CBS13) ―  numSlides of totalImages  We may have to find another nickname for "Two Buck Chuck".

The bargain wine sold at Trader Joe's could soon cost you a lot more than two dollars.

That's because the Governor wants to raise the wine tax to help close the state's massive budget deficit.

Governor Schwarzenegger is proposing raising the tax on a bottle of wine from the current 4-cents to 29-cents.

Wineries say they have to pay the excise taxes up front and that big a jump could force some of them out of business.

It isn't clear how much support there may be in the legislature for increasing the wine tax.