Pennsylvania's legislature is set to consider a bill that would roll back the state's recently-implemented flexible-pricing scheme for alcohol. R Street's Jarrett Dieterle has written before about how booze markups in control states function analogously to a stealth tax, and now R Street's Kevin Kosar weighs in on Pennsylvania's specific situation in an op-ed for the American Spectator:
If Rep. Jesse Topper has his way, Pennsylvania’s legislature will roll back its infamous stealth tax on drinks. Topper, a Republican representing the south-central Bedford, Franklin, and Mercer counties, has introduced H.R. 2263, which would repeal the “flexible pricing” authority given to the Pennsylvania Liquor Control Board in 2016.
Why is this good news? Well, the cheerfully named provision had the dreadful effect of enabling the state liquor officials to raise prices as they saw fit. The PLCB has a monopoly on the sale of spirits and a near monopoly on wine sales, so it can set prices without fear of price competition. And with the state legislature demanding the PCLB give it big chunks of revenue each year to fund government employees’ pensions and the like, the problem is obvious: flexible pricing is a stealth tax. Bureaucrats raise revenues for general government spending by elevating mark-ups paid by drinks consumers, sans legislative enactment. It is literally taxation without representation...
Read the rest of Kosar's op-ed here.