Diageo: Axe taxes, not jobs

By Adam Fogle  2009-5-18 15:54:30

   


    Stopping tax increases on alcohol will save jobs and promote industry. That’s the push being made by the world’s largest spirits firm, Diageo.

    And they’ve launched a new website, AxeTaxesNotJobs.com, to promote their message.

    “Right now, South Carolina residents pay 55.4 percent tax on alcohol which equals $5.78 on an average bottle of Smirnoff vodka,” said a representative for Diageo’s public relations firm. “The proposed tax increases adds insult to injury and would cause retail sales to decline, while workers - waitresses and waiters, bartenders and local retail workers - in the South Carolina hospitality industry will lose their jobs.”

    Currently, there are no proposed alcohol tax increases in South Carolina. But that doesn’t mean we shouldn’t expect some soon.
 
    A number of groups across the country are lobbying for federal and state alcohol tax hikes in order to achieve budgetary goals and help pay for the prevention and treatment of alcohol-related diseases.

    And what would be the result if alcohol taxes are increased? According to Diaego, nothing good.

    The distilling company said the last time Congress raised taxes on alcohol, $1.3 billion in wages were lost, while 98,000 people found themselves out of work.

    On the “Axe taxes” website, Diageo pointed out that, on average, 59 percent of liquor is tax as opposed to 41 percent for beer and wine.

    To sign the petition, or for more information, go to AxeTaxesNotJobs.com.


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