Efforts are being made to raise the alcohol tax in New Mexico, with a new proposal aiming to increase the tax on beer, wine, and spirits. This move is aimed at addressing the state’s budget deficit and could potentially generate millions of dollars in revenue.
Currently, New Mexico has some of the lowest alcohol taxes in the country, with taxes on beer and wine being significantly lower than neighboring states. This has led to concerns about the impact of alcohol consumption on public health and safety, as well as the burden it places on the state’s healthcare system.
Advocates for the tax increase argue that raising the alcohol tax would not only generate much-needed revenue for the state, but also help to reduce alcohol-related harm and promote responsible drinking. They point to research that shows a correlation between higher alcohol prices and reduced alcohol consumption.
However, the proposal to raise the alcohol tax is likely to face opposition from industry groups, who argue that higher taxes could hurt businesses already struggling due to the COVID-19 pandemic. They also argue that imposing higher taxes on alcohol could lead to increased cross-border shopping, as consumers seek lower prices in neighboring states.
Despite these challenges, proponents of the tax increase remain optimistic, with some lawmakers expressing support for the proposal. As discussions continue on how to address New Mexico’s budget deficit, the issue of raising the alcohol tax is likely to remain a topic of contention. Ultimately, the decision will rest with state legislators, who will need to weigh the potential benefits of increased revenue against the concerns raised by industry groups.
Source
Photo credit news.google.com