Virginia ABC mistake

[Guest guest]

Virginia is in the process of dismantling its 76 year monopoly on liquor sales. This privatization was supposed to save money for the consumer and the state. However, they are imposing a complicated new set of taxes and fees ranging from a 4% tax on daily liquor sales at bars and clubs to those quoted below. I'm sure bureaucratic tracking and payment enforcement will consume a lot of this new tax money as well, not to mention the extra headache for everyone in the system. This looks like a really stupid idea, but then it was from someone in the Stupid Party.

Quote:

The state would have to impose an excise tax of more than $21 a gallon sold to wholesalers to replace that revenue, making the new system uneconomical for the private wholesalers and retailers that would have to pay for the privilege of being licensed to distribute distilled spirits in Virginia.Initially, the plan proposed two sources of revenue -- an excise tax of $12.50 and a "buyout fee" of $2.25 a gallon -- to produce most of the annual revenue, about $160 million. However, that number could increase if other components of the plan generate less money than expected.McDonnell's plan also counts on money from the "on-premises fee" for restaurants and bars to help make up the difference. Currently, restaurants and bars buy liquor from ABC's 332 retail stores and pay the same price as other consumers, so the industry is counting on savings from a private system that would more than offset the cost of the proposed new fee.

http://www2.timesdispatch.com/news/virg ... ar-485142/