Community Advocates Applaud Governor Purdue’s Support for Increases to Alcohol and Tobacco Taxes
Jul 12th, 2009 • Category: Flash Alert, News
July 9th, 2009
Contact: Phil Mooring (252) 237-1242
Community Advocates Applaud Governor Purdue’s Support
for Increases to Alcohol and Tobacco Taxes
The North Carolina Substance Abuse Federation, reacting to Governor Beverly Purdue’s Pathway to a Balanced Budget that was released Tuesday, issued a statement supporting the Governor’s inclusion of increased taxes on alcohol and tobacco.
In a statement released after the regular monthly meeting held Wednesday July 8th, the eighteen member advocacy organization voiced its support for the Governor’s proposed increases on tobacco products and alcohol: 50 cents on tobacco products, 2 cents on beer, 8 cents on wine and a 2% liquor tax increase. The small increases in alcohol taxes will have little impact on North Carolina legal consumers of alcohol products with the average impact estimated at less than $50 per year.
Increased taxes on these products were recommended in the January 2009 report by the North Carolina Institute of Medicine, “Building a Recovery-Oriented System of Care: A Report of the NCIOM Task Force on Substance Abuse Services,” which was requested by the General Assembly in 2008. http://www.nciom.org/SATF_Full%20Report.pdf. The report also called for almost $2 million in new recurring funds for the state’s under-funded substance abuse system. The current proposed budget makes expansive cuts in the Division of Mental Health, Developmental Disabilities and Substance Abuse Services.
The Federation members noted that the beer tax has not been increased in North Carolina since 1968. In that year single family homes were selling for $11,000 and new cars for under $5,000.
NC Substance Abuse Federation members are deeply concerned about the loss of prevention and treatment services in communities across the state at a time when demand for services is increasing due to high unemployment. Proposed human service budget cuts will also put people who provide services out of work and increase unemployment in many of the communities hardest hit by the recession.
“Increasing the alcohol and tobacco tax will not only increase revenue but will also have a positive public health impact. We know that increasing the tax on alcohol and tobacco leads to decreased consumption by youth who are more price-sensitive,” stated Phil Mooring, Chairman of the North Carolina Substance Abuse Prevention Providers Association, a member of the Federation.
The North Carolina Substance Abuse Federation, an alliance of eighteen statewide organizations, is committed to the health and public safety of 9 million North Carolinians.
