Poor Economy Prompts Tax Increases

More states are proposing tax increases on beverage alcohol this year to fight the effects of the recession and state budget deficits. Kentucky and Arkansas legislators introduced tax increase last week, joining states like New York and California. Clearly the industry is against such initiatives, but bad economic times may make it easier for them to pass. According to an article in WSJ, Discus ceo Peter Cressy acknowledged it “will be an extremely tough year” to stop state tax increases.