Pennsylvania’s Stealth Tax On Drinks

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R Street's Kevin Kosar writes about the Pennsylvania Liquor Control Board's recent decision to increase mark-ups on certain liquor products. He notes that the PCLB's mark-ups act as a stealth tax on consumers of booze:

Oh, Pennsylvania. You are wonderful in so many ways. Philadelphia has architectural marvels. Pittsburgh has the endlessly victorious Steelers and Penguins. The Allegheny and Poconos offer gorgeous vistas, and parks like Nockamixon are beatific places to hike and fish. And where else can one find ring bologna?

But your government, well, friends you have a problem. “No taxation without representation” is an age old creed in our nation. Yet, your government has a system that wantonly fleeces anyone who buys drinks.

Despite the 21st century’s arrival, the state maintains a system of government-run drinks shops... [Recently] the PLCB announced it was raising prices on 421 products. Its argument for doing so was blunt: legislators demanded PLCB pay $185 million into the state’s budget to cover rising public pension costs and other expenses.

What a mess. The state’s elected officials lack the courage to cut costs or raise taxes. Instead of presenting the public with the bill for the goods and services they consume, elected officials are hiding the true cost of government by shifting the burden to consumers of privately produced products. Do alcoholic beverages have anything to do with state pension costs? Nothing, of course.

And make no mistake, these mark-ups are a tax in disguise...

Read the rest of the column here.