Friday, May 2, 2008

Drink Tax destroying Tavern Business?

"The power to tax is the power to destroy. The drink tax is destroying the tavern industry in Allegheny County," Mr. McCullough, an at-large Republican from Upper St. Clair said.

He has proposed to scale the drink tax down to 5 percent by July 1, and then repeal it in January because initial returns show the levy is on pace to exceed the $28 million it was expected to raise.

Implemented together with a $2-a-day tax on car rentals this year, the drink tax is part of a dedicated funding structure for the county's $30 million subsidy of the Port Authority.

Both levies were estimated to collect $32 million in revenue when they were approved within the county's $727.6 million budget.

This morning, Mr. McCullough said the drink tax alone is on pace to bring in more than $40 million in revenue based on receipts of the first three months of the levy.


So lets see, its raised MORE than was estimated so that means people are BUYING MORE than was anticipated. This is some sort of voodoo economics on determining that businesses are being destroyed?

Personally I think the drink tax should be RAISED. I don't want to share the roads with drunks.

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