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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: 7715
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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#1. To: All (#0)
I keep hearing Conservatives tout McDonnell as a potential rising star with national potential, but let's look at what he's done since becoming Governor of Virginia. Most notably, he ran a small surplus by pushing for increased user fees (aka "taxes"), speeding up the due date for sales tax receipts to push it into this fiscal year, and taking tens of billions of dollars in stimulus funds. And now he wants to raise liquor taxes. Is this what we have to look forward to if the "tea party" crowd takes the Congress in November?
But ... but ... but .... Pubbies are the party of LESS taxes!!!! say it ain't so Joe!!!!!!!!! There's not a difference between the two parties. Not a bit. Well mad dog, well yukon, what say you, pubbie shills? Lemme guess. You'll be in attack mode. For anyone else, a vote for a dem is a tax increase. A vote for a pubbie, is a vote for tax increases if they can't use dems to cover their agenda.
(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.
And now he wants to raise liquor taxes. Is this what we have to look forward to if the "tea party" crowd takes the Congress in November? Fuck you. The side you shill for is as bad. We got to where we are with the pubbies and dems passing the torch of leadership back and forth, shill.
(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.
The good thing about this is that he wants to eliminate the government monopoly on selling booze. I grew up in Michigan. We didn't have government monopoly liquor stores. When I first encountered them, I just didn't understand. Conversely, in Michigan city governments monopolize trash collection. In Washington, we pay private companies (Waste Management, Rubitino, etc) to pick up the trash. There are private companies around the country providing much more including fire departments and ambulance services. If I were Governor of a state, the very first thing I would do is call all of the other governors and ask what services are provided by private companies in their state. The complete list would be shocking to someone in any given state, who was used to government providing some of the services. Then I would privatize everything on the list because the private delivery of each service has been proven to work somewhere.
Better to raise taxes then spend money via borrowing!
Clinton and Cuomo are the true bandits who lit the fuse to this economic crisis we're now in. All in the name of getting more minorities in houses: http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=12554
So you have no problem letting the Bush tax cuts expire?
"How many confirmed NV Mig kills do YOU have general? I only have three." - Mad Dog, the village idiot's hemorrhoid.
Not really, he'll only allow 1,000 licenses, which companies would have to pay the state for. That sounds like socialism.
It's not. It's free market feudalism, where the warlord who offers the D&R cartel the biggest bribe, gets to squeeze the serfs. "We're bringing feudalism over here, so we don't have to fight it over there" ~B. W. O'Bushma
Yes, if at the same time they stop borrowing and just raise the taxes. Borrowing is generational theft. Just let the taxes rise to cover spending! There, no more democrats get elected. Problem solved.
Clinton and Cuomo are the true bandits who lit the fuse to this economic crisis we're now in. All in the name of getting more minorities in houses: http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=12554
Just let the taxes rise to cover spending! Works for me. Let's see how the Republicans do that once they're in the majority again, shall we?
"How many confirmed NV Mig kills do YOU have general? I only have three." - Mad Dog, the village idiot's hemorrhoid.
I've never heard it quite put that way before, but you are exactly right. Market Feudalism. Nice job.
Don't hold your breath froggy. Neither party can get us out of this mess.
Clinton and Cuomo are the true bandits who lit the fuse to this economic crisis we're now in. All in the name of getting more minorities in houses: http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=12554
Yet here you are cheering the GOP on.
So now you're saying the Republicans won't raise taxes to cover spending? Make up your mind.
"I can picture in my mind a world without war, a world without hate. And I can picture us attacking that world, because they'd never expect it." — Jack Handey
Make up your mind. Where did I say they would?
Clinton and Cuomo are the true bandits who lit the fuse to this economic crisis we're now in. All in the name of getting more minorities in houses: http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=12554
Post #5, I thought. However, I agree with you. They won't raise taxes and they won't cut spending. The Democrats may raise taxes, but they'll also increase spending more.
"I can picture in my mind a world without war, a world without hate. And I can picture us attacking that world, because they'd never expect it." — Jack Handey
Wood chipper, you're a fookin idiot!
However, I agree with you. They won't raise taxes and they won't cut spending. The Democrats may raise taxes, but they'll also increase spending more. Here are the options: 1. Keep the Bush tax-cuts and continue to spend, spend, spend! 2. Let the tax-cuts expire and continue to spend, spend, spend (Borrow more and more). If you let the tax-cuts expire you still fall short next year by 1.2 Trillion. 3. Stop deficit spending and cut to make revenue = expenditures (fat chance!). 4. Raise taxes to meet expenditures. Do this also at the state level. I'm for option #4. This would result in a tax protest our nation hasn't seen since 1776. It is criminal to borrow against the good faith and credit of the future generations.
Clinton and Cuomo are the true bandits who lit the fuse to this economic crisis we're now in. All in the name of getting more minorities in houses: http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=12554
LMAOAY!!!!!!!!!!! Geeze woody you got a small letter behind somebody's name in BOLD! OMG! LMAOAY!!!!!! You are SUCH a WEAK little pissant woody boy. WEAK!!
Living in mouth breather's empty noggins 24/7/365 totally rent free!
It sure is. They don't owe it. Congress needs to pass a law to make those who voted for the expenditures beyond their terms personally responsible for the debt. It is called treason.
Actually no, you mental midget. I POSTED (not got,POSTED) an UPPER CASE letter in bold behind someone's name. The name is not in bold. (BTW shithead, the word is not "small", it is "lower case".) Why is a REPUBLICAN raising taxes? You pubbie shills know no shame. Will you answer this question: WHY IS A PUBBIE RAISING TAXES???? Let me guess. He had to, in order to "correct" the largess of the dims, right? Just as it will be when the pubbies take the House and Senate in November. They'll either raise taxes, or deficit spend waiting for the torch to be passed to the dims to raise taxes. Just as the dims are doing after Bush's "out the ass" deficit spending. (No child left behind, for one. Ring a bell, asshole?) And they'll both blame it on each other, while both bend us over and fuck us, with the help of the likes of you. We got to where we are with the two parties passing the torch of leadership between them. Period. Unless you'd like to blame our present predicament on a third party? Didn't think so.
(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.
Wassa matter puppy, cat got your tongue?
(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.
I see you were here posting on 9/9 and still don't have the balls to answer.
(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.
LMAOAY!!!!! Why, exactly would I know "why" some F ing repukelican't whore is doing what he's doing woody boy? I understand that this is way too complex of a concept for a mentally challenged chimp such as you to grasp woody boy, but ... "hope springs eternal"; I'm a F ing "traditional" American CONSTITUTIONAL CONSERVATIVE you mouth breathing dip shit, NOT a "repukelican't" or "demonRAT", you gibbering chimp. I said that the little letter behind a name isn't enough to get folks to vote for that person anymore, you gibbering retard. It shows what an absolute moron you are woody boy that you see the political world as just either "demonRAT" or "repukelican't". You gibbering FOOL. Our present predicament is based on decades of America's enemies managing to use the "Hegelian dialectic" against traditional American culture and politics, you insipid gibbering ponce. Get your care giver to look it up for you chongo.
Living in mouth breather's empty noggins 24/7/365 totally rent free!
Right. And I'm Batman. Did you vote for Bush?
(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.
-- Curly meets Mad Dog, then Yukon enters the scene and bonds with his fellow Tundra Trash.
LMAOAY! No woody boy, you are THE Bat FOOL. Did you vote for "Rue Paul" Bat FOOL?
Living in mouth breather's empty noggins 24/7/365 totally rent free!
LMAOAY!!!!!!!!!!!!!!!!!!!!!!!! I see your lips flapping LIAR but I don't hear a word that you are saying LIAR. What's the matter corn flake boy? Want your goat back? Blue really is your color a$$wipe. LMAOAY!!!!!!!!!!!!!!!!!!!
Living in mouth breather's empty noggins 24/7/365 totally rent free!
MD 2020, you figured out how to do graphics so they show. this is so cool. I was afraid you had drunk away so much gray matter that would not be possible. Thanks for the entertainment. Bet that guy got some rash road rash from that one. I seem to bother you little guy, you don't bother me. You are your own worst enemy. Your posts are so replete with your own internal code words, lurkers are not going to waste time with them. Which makes you ineffective in the art of communicating to people on forums. Lurkers also hate spam, and look for not only humorous things like graphics, but they want articulate, well thought out discussion or debate. Keep saying lalalalala, I don't hear. I appreciate it as it makes my job that much easier. You can't rattle me, cupcake. My skin is very tough politically, and you make a great straw man to work off of, so truthfully, I am highly pleased to see you back. ;-D
Now is that any way to talk to a war hero who personally shot down 3 Migs from a ship in Viet Nam?
Horseshit, but the new norm for you this election cycle. 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. Too easy, GO...you're losing your touch...lmao
Obama's first all-by-his-lonesome budget, btw, calls for a $1.17 trillion deficit.
A scary thought, that moron flying a military aircraft complete with ordinance and ammunition. In any event, even if you give him the benefit of a great deal of doubt and worked under the assumption he did as claimed, what is that pathetic spectacle anyway? Top of the line aircraft with top of the line fire support and reconnaissance provided v. second and third hand Soviet deathtrap aircraft flown by third world nation military with very little training or experience doing what they were doing. What M. Doggie Dogg claims as glory is as cowardly as shooting deer from a tree in a deer stand half drunk on moonshine.
LMAOAY cornflake boy!!!!!!!!!!!!!!!!!!!! I see your lips flapping LIAR but I don't hear a word that you are saying LIAR. Stick it where the sun don't shine LIAR! Living in mouth breather's empty noggins 24/7/365 totally rent free!
Yawn ... 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!
-- 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.
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And the Conservative plan to create jobs is......?????
#2. To: go65, Mad Dog, Ibluafartsky (#0)
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.
#3. To: go65 (#1)
I keep hearing Conservatives tout McDonnell as a potential rising star with national potential, but let's look at what he's done since becoming Governor of Virginia. Most notably, he ran a small surplus by pushing for increased user fees (aka "taxes"), speeding up the due date for sales tax receipts to push it into this fiscal year, and taking tens of billions of dollars in stimulus funds.
#4. To: go65 (#0)
(Edited)
the era of big government is over -- Bill Clinton
#5. To: go65 (#1)
#6. To: Nebuchadnezzar (#5)
Better to raise taxes then spend money via borrowing!
#7. To: jwpegler (#4)
The good thing about this is that he wants to eliminate the government monopoly on selling booze.
And the Conservative plan to create jobs is......?????
#8. To: go65 (#7)
(Edited)
That sounds like socialism.
#9. To: Skip Intro (#6)
So you have no problem letting the Bush tax cuts expire?
#10. To: Nebuchadnezzar (#9)
Borrowing is generational theft.
#11. To: hondo68 (#8)
It's not. It's free market feudalism, where the warlord who offers the D&R cartel the biggest bribe, gets to squeeze the serfs.
the era of big government is over -- Bill Clinton
#12. To: Skip Intro (#10)
Works for me. Let's see how the Republicans do that once they're in the majority again, shall we?
#13. To: Nebuchadnezzar (#12)
Neither party can get us out of this mess.
#14. To: Nebuchadnezzar (#12)
#15. To: Skip Intro (#14)
So now you're saying the Republicans won't raise taxes to cover spending?
#16. To: Nebuchadnezzar (#15)
#17. To: Wood_Chopper (#2)
pubbie shills?
#18. To: Skip Intro (#16)
Post #5, I thought.
#19. To: Wood_Chopper (#2)
#20. To: Nebuchadnezzar (#18)
It is criminal to borrow against the good faith and credit of the future generations.
#21. To: Mad Dog (#19)
Geeze woody you got a small letter behind somebody's name in BOLD!
#22. To: Mad Dog (#21)
#23. To: Mad Dog (#21)
#24. To: Wood_Chopper (#21)
WHY IS A PUBBIE RAISING TAXES????
#25. To: Mad Dog (#24)
(Edited)
I'm a F ing "traditional" American CONSTITUTIONAL CONSERVATIVE
#26. To: Mad Dog (#24)
(Edited)
Les personnes faibles ne peuvent être sincères.
#27. To: Wood_Chopper (#25)
#28. To: Ferret Mike (#26)
#29. To: Mad Dog (#28)
Les personnes faibles ne peuvent être sincères.
#30. To: Ferret Mike (#29)
#31. To: go65 (#1)
I keep hearing Conservatives tout McDonnell
#32. To: Skip Intro (#30)
Les personnes faibles ne peuvent être sincères.
#33. To: Ferret Mike (#29)
#34. To: Skippy the drive up window commando Intro (#30)
#35. To: Ferret Mike (#32)
#36. To: Mad Dog (#33)
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.
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