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Title: Virginia may add to fees on alcohol (GOP governor to raise taxes)
Source:
Washington Post
URL Source: http://www.washingtonpost.com/wp-dy ... 010/09/03/AR2010090306173.html
Published: Sep 4, 2010
Author: Washington post
Post Date: 2010-09-04 21:54:03 by go65
Keywords: None
Views: 7620
Comments: 76
RICHMOND - Gov. Robert F. McDonnell (R), scrambling to make ends meet in his plan to privatize Virginia's 332 state-run liquor stores, is considering adding a fee on alcoholic drinks sold in restaurants and bars to help make up the $250 million in annual taxes and profits that state stores currently generate, according to Richmond sources familiar with the still-evolving plan. Under the version of the proposal discussed with industry officials Friday, the drinks surcharge, which would be imposed either as a tax on customers or on restaurants' liquor receipts, would be part of a package of new fees including a per-gallon charge to wholesalers. Democrats and restaurateurs immediately pounced on the proposal as a tax "on people drinking alcohol," as Senate Majority Leader Richard L. Saslaw (Fairfax) put it. McDonnell pledged in his 2009 campaign to turn over the state's retail liquor business to private operators as a way to produce a windfall of as much as $500 million to fix roads. And the governor has said that his plan would achieve privatization without depriving Virginia of the nearly $250 million in profit that state-run stores generate. A Washington Post survey of other states that have reduced the government's role in alcohol sales and distribution indicates that state revenues have often fallen short of politicians' projections. In Iowa in the late 1980s, for example, as a financial crisis brought about the collapse of dozens of farms and banks, officials frantically searching for new revenue shuttered the state's 207 liquor stores and allowed private companies to buy liquor licenses. The result was not quite what politicians had promised. Private stores opened in new places and kept longer hours, but prices increased by 8 percent so retailers could take a profit, and selection narrowed as the state's free-standing stores were replaced by grocery or convenience stores that often limited their stock to bestselling brands. In 1987, the first year of privatization, the state took in about half of the bounty it had anticipated, according to interviews and news reports. McDonnell would not comment Friday on the latest reports about his privatization plan, but earlier he said that it will fare better than other states' because they did not privatize correctly, failing to learn lessons from the 32 states that have had privately run liquor sales since Prohibition ended. "We think they didn't do it right,'' he said. "We think the competition that will be generated for licenses will be significant. . . . Thirty-two states do it. They think the free market works." McDonnell is considering auctioning up to 1,000 licenses to the highest bidders. The proposal, which would privatize alcohol sales from wholesale to distribution to retail, would allow Virginians to buy liquor at private liquor stores, grocery and convenience stores, and big-box stores such as Wal-Mart and Costco. McDonnell expects Virginia will collect a one-time windfall from a variety of sources after privatization: $34 million from selling off properties such as a state liquor warehouse in Richmond, $160 million from wholesale license fees and several hundred million from auctioning off retail licenses, according to the sources. The governor has cited research concluding that giving up state control of liquor sales would have no impact on drunken driving or other alcohol-related problems, but several other studies have found an increase in consumption in states where private operators take over from a state monopoly. McDonnell's government reform commission will get his full proposal Wednesday, after which the governor expects to call legislators back to Richmond for a special session on privatization and other cost-cutting ideas. As word of the latest proposal reached bars around the state, reaction was critical. Kenny Mitchell, who has managed Murphy's Grand Irish Pub in Old Town Alexandria for nine years, said he welcomes a privatized system if it brings cheaper prices and makes it easier to buy liquor. But not if it brings new taxes. "More taxes. Where does it end?" he said. "Restaurants are already struggling. Small businesses run this country.'' But sources say McDonnell is expected to argue that any new fees on restaurants would be a wash, because they would be spending less to buy alcoholic beverages from private wholesalers than they did from the state, which charged bars and restaurants the same prices paid by people buying a single bottle. The governor's plan would go much farther than privatization schemes have in other states, but the mechanics of achieving that goal remain unclear. Iowa and West Virginia, the only two states that have privatized their retail stores in the past two decades, each made less in license fees and sales of assets upfront than they had anticipated. Maine, which leased out its wholesale operation to one consortium, got an initial revenue boost from its privatization, but continues to collect less money each year than when it ran its liquor system. Officials in Iowa and West Virginia say the change helped them become more efficient and saved overhead costs. In Iowa, 16 years went by before tax and fee receipts from liquor sales - which fund substance abuse treatment and prevention, aid to localities and the state's general fund - reached the level that alcohol had brought in when Iowa ran its own stores, according to the state's Alcoholic Beverages Division. Four other states - Pennsylvania, North Carolina, New Hampshire and Washington- are considering privatizing liquor sales. Voters in Washington will choose from a pair of privatization plans later this year, but a recent study concludes that the state and localities stand to lose hundreds of millions if either proposal passes. Nearly all of the 18 states that retained control over alcohol sales after Prohibition have considered some kind of privatization over the last 76 years, but not all have succeeded. "It takes a huge effort to try to get the political capital together to change the system,'' said Garrett Peck of Arlington County, author of "The Prohibition Hangover: Alcohol in America from Demon Rum to Cult Cabernet." The 18 states that stayed in the alcohol business after Prohibition set up vastly different systems. Some managed beer, wine and liquor sales; others, just liquor. A couple had private retail stores from the start. All controlled wholesale and pricing. Privatization proposals started popping up over the past couple of decades, often meeting opposition from labor unions, businesses or those concerned about higher alcoholism rates or lower state revenues. Alabama added 425 private stores to its 160 state stores after a 1981 court settlement. In 1991, Ohio saved $25 million by allowing companies to run its 453 stores. Michigan leased out its three large warehouses and shut down 62 smaller ones in 1998. "Nearly every state has looked at privatizing,'' said James Sgueo, president of the National Alcohol Beverage Control Association. "But no state has totally privatized." In West Virginia, which lets companies bid for licenses a decade at a time, the cost of operating retail outlets dropped by nearly two-thirds after privatization, but state receipts from taxes and fees also dropped, by about a third, according to the state revenue department. Maine gradually eliminated state stores and, in 2004, leased its wholesale operation to help close a budget shortfall. The state received a $125 million windfall from the conversion, but now collects less than a quarter of the annual revenue it got from liquor sales before privatization. "There are individuals who believe the state didn't get the value of a growing business,'' said Dan Gwadosky, director of the Bureau of Alcoholic Beverages and Lottery Operations in Maine. In Iowa, privatization was "a business decision,'' said Terry Branstad, a Republican who served as governor in the 1980s and 1990s and is running for the office again. "We saved a tremendous amount of money." Former legislator Rod Halvorson led the opposition to privatization, worrying that it would increase access to alcohol and result in the loss of good-paying, full-time jobs. He also didn't think the state should give up its profits from liquor sales. "Whenever you can hold onto an income-generating asset, you should,'' he said. "It's common sense." In Virginia, some lawmakers on both sides of the aisle are skeptical of McDonnell's claim that he can maintain the revenue from alcohol that has been built into state budgets. Sen. Emmett Hanger (R- Augusta) said the Commonwealth Competition Council he chairs concluded that selling off the system likely wouldn't be a moneymaker. "Government is capable of doing a good job in some areas - and this is an area that I think we have a vital state interest in," Hanger said. U.S. Sen. Mark Warner, a Democrat who considered privatizing liquor stores when he was governor, supports the concept, but warns that "some of the numbers that I've heard bandied around are wildly optimistic.'' McDonnell says he's confident his plan will be a plus for the state: "I'm going to do what's right for Virginia: Take the best practices of 32 other states and look at what on the one hand maximizes the revenues that I can use for transportation and on the other hand preserves public safety.''
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#36. To: Mad Dog (#33)
-- M Doggie Dog teaches the alphabet as part of his many 'hero' duties cleaning the O club swimming pool... err... day dreaming of being a Naval Aviator.
You misunderstand. He wasn't a pilot. He claims to have done this shipboard, personally. Since there were only five confirmed Mig kills by ship fire, he got 60% of them. He's a hero. Funny how Palin hasn't acknowledged his greatness, considering he lives in the same state that she does.
Yawn ... I see your lips flapping LIAR but I don't hear a word that you are saying.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
LMAOAY!!!!!!!! Could YOU possibly be any more ignorant skippy boy? Tsk tsk, you forgot to ask if he wanted to get fries wi dat skippy boy.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
He's even a larger moron then I thought. Yep, he's a liar, first class. He probably can't even abuse his own personal pants popgun without it mis-firing killing scores of crotch crickets. M. Doggie Dog, is nothing but a dishonorable thief.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
You sure ain't no Felix the Cat. Your bag of tricks is far too lean for that.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
You are amusing because you only live to feed your hatreds and resentments. You should find a 12 step group, get a sponsor and work off your problem. Your cock and bull war story is interesting as it shows how you hate teamwork in taking a preposterous amount of credit for things you could ever have done. It is congruent with everything else observable about what kind of goon bah you are M. Doggie Dogg. You didn't want to articulate it because you know it's false, and you have to husband and protect what little credibility the slim possibility you could of done such a thing against being melted by the light of day. You and BYelsin are Haiku artists supreme with your emotional and encoded to the point if being indecipherable because your resentments and grudges overload your intellect. Ease up and leave some whiskey for your hometown Tundra Trash. The amount you must be drinking to be this bad off in here can't be doing you any good.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Too drunk to do any more then repeat spam, which is no surprise.
YOU are? Isn't that just fascinating? Living in mouth breather's empty noggins 24/7/365 totally rent free!
You always answer a question with another question? You must be from New York, not Alaska.
I still stand by what I said. Thanks for the link though.
Obama's first all-by-his-lonesome budget, btw, calls for a $1.17 trillion deficit.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
I've worked outdoors almost my entire life M. Doggie Dogg. And this is the first time I've ever been accused of being too dumb to take precautions during a thunderstorm. Too bad you are so inarticulate you can only change a graphic or two every now and again.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Nice musical idols you have there, M. Doggie Dogg. Thanks for sharing.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
And you admire Gonzo Journalism in the tradition of Hunter Thompson as well. Me M. Doggie Dogg, you are just a busy little old dung beetle all fill of surprises this morning. Keep them coming kid, enjoying it.
Mad Dog, the vintage wine of the dine and dash set. Stop running away, cream puff. Just because all the girls do for you is prick tease you to death, don't mean this is what you should rhetorically do to us.
Your shit must be thrice stepped on if that is the best needling you have to offer.
LMAOAY. Living in mouth breather's empty noggins 24/7/365 totally rent free!
Oh my...that is one psychotic, evil looking weird dog...damn, sure to give a person nightmares...lol
"I really wanna care. I wanna feel somethin'. Let me dig a little deeper:. No, My give-a-damn's busted"~ Messina Jo Dee
You are aware that the GOP choose McDonnell to give the response to Obama's SOU in January? Once again, you may stand by what you said, that still doesn't make it accurate.
I had a boss who's wife raised those little 'rat dogs.' I remember falling into their outside run trying to walk along the 2" by 12"s to wake Bill up to go into Weyerhauser to deal with aspects of the helicopter forest fertilization project we were working on. I fell in and was attacked by 20-30 Chihuahuas. It was more a major irritation really. But they are not my favorite pooch.
Lame, trite, old; is that really the best you can do? When you see me responding to pics with prose, it's usually because there is no point in dueling graphics if your protagonist can't keep up with you. As is the case with you.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Q:How can you tell when the stage is level at a Palin event? A: Mad Dog is standing on it, drooling out of both sides of his mouth! Hiya Mad Dog! Wassup?
(sneakypete)DID Palin say or write these things or not? (Mad Dog's reply) I don't know or F ing care. Pete, MD doesn't know or care what Palin says or writes, he'll support her no matter what.
No, I didn't know that, and as I've stated a 100 times in this forum, I have no use for McConnell. Apparently, just like the Owe-bama administration, the Pelosi led House, and the Reid led Senate, you simply do not listen to anyone. Its pathetic. Its also why in 21 days two of your three God's get fired, one of those Retired, and Owe-bama suffers a historic defeat of epic proportions. While that works for me, the price this nation is paying for the arrogance, and incompetence is stunning.
Obama's first all-by-his-lonesome budget, btw, calls for a $1.17 trillion deficit.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
You left the "20 20" off your screen name, Mad Dog.
(sneakypete)DID Palin say or write these things or not? (Mad Dog's reply) I don't know or F ing care. Pete, MD doesn't know or care what Palin says or writes, he'll support her no matter what.
He's been invited to post at 4um by JT so he's cleaning himself up for the interview..
I'm sure my invitation MUST have gotten lost in the mail.
(sneakypete)DID Palin say or write these things or not? (Mad Dog's reply) I don't know or F ing care. Pete, MD doesn't know or care what Palin says or writes, he'll support her no matter what.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Seeing how you are indeed daffy as a cross eye dog chasing both his tails, this is a great iconic representation of you presenting the other picture in your post. Tell me, as you usually post two pictures; is that to metaphorically represent both your remaining brain cells?
Living in mouth breather's empty noggins 24/7/365 totally rent free!
I always knew you were a Walmart greeter. Now we know, the rest of the story.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Les personnes faibles ne peuvent être sincères.
#37. To: Ferret Mike (#32)
A scary thought, that moron flying a military aircraft complete with ordinance and ammunition.
#38. To: Ferret Mike (#36)
#39. To: Skippy the drive up window commando Intro (#37)
Since there were only five confirmed Mig kills by ship fire, he got 60% of them.
#40. To: Skip Intro, Mad Dog (#37)
Les personnes faibles ne peuvent être sincères.
#41. To: Ferret Mike (#40)
#42. To: Mad Dog (#41)
Les personnes faibles ne peuvent être sincères.
#43. To: Ferret Mike (#42)
#44. To: Mad Dog (#43)
Les personnes faibles ne peuvent être sincères.
#45. To: Ferret Mike (#44)
#46. To: Mad Dog (#45)
(Edited)
Les personnes faibles ne peuvent être sincères.
#47. To: Ferret Mike (#46)
#48. To: Mad Dog (#47)
Les personnes faibles ne peuvent être sincères.
#49. To: Badeye (#31)
And if he is in favor of raising taxes, that means you'll be supporting him. And he won't ever be taken seriously 'nationally' by Conservatives.
Virginia Tea Party Patriots Applauds Governor McDonnell http://lynchburgteaparty.com/tag/bob-mcdonnell/
Reality check - Obama is more popular than the tea party
#50. To: go65 (#49)
#51. To: Ferret Mike (#48)
#52. To: Mad Dog (#51)
Les personnes faibles ne peuvent être sincères.
#53. To: Ferret Mike (#52)
#54. To: Mad Dog (#53)
Les personnes faibles ne peuvent être sincères.
#55. To: Ferret Mike (#54)
#56. To: Mad Dog (#55)
Les personnes faibles ne peuvent être sincères.
#57. To: Mad Dog (#55)
Les personnes faibles ne peuvent être sincères.
#58. To: Mad Dog (#55)
Les personnes faibles ne peuvent être sincères.
#59. To: Ferret Mike (#58)
#60. To: Ferret Mike (#58)
#61. To: Badeye (#50)
I still stand by what I said. Thanks for the link though.
Reality check - Government spending is down, the deficit is down, government employment is down, and private hiring is up.
#62. To: Murron (#60)
Les personnes faibles ne peuvent être sincères.
#63. To: Mad Dog (#59)
Les personnes faibles ne peuvent être sincères.
#64. To: Ferret Mike (#63)
#65. To: Mad Dog (#64)
#66. To: go65 (#61)
You are aware that the GOP choose McDonnell to give the response to Obama's SOU in January?
#67. To: Wood_Chopper (#65)
#68. To: Mad Dog (#67)
#69. To: Wood_Chopper (#68)
You left the "20 20" off your screen name, Mad Dog.
#70. To: mininggold (#69)
He's been invited to post at 4um by JT...
#71. To: Wood_Chopper (#68)
#72. To: mininggold (#69)
#73. To: Mad Dog (#71)
#74. To: Ferret Mike (#73)
#75. To: Mad Dog (#74)
#76. To: Ferret Mike (#75)
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