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— The Senate Finance Committee has said it is considering raising federal taxes on alcohol and creating a new tax on sugar-sweetened drinks to help pay for revamping the nation's health care system, an overhaul that could cost $1.5 trillion over the next decade.
_Alcohol tax: Federal alcohol taxes currently differ by type of beverage, and are higher for distilled spirits than for beer and wine. The proposal would charge all beverages the same tax rate, based on their alcohol content, in effect eliminating the lower rate that beer and wine have had. Under the plan, the federal tax on a six-pack of beer would rise from 33 cents to 81 cents. The tax on wine would increase from 21 cents per bottle to 70 cents. The tax on hard liquor would rise from $2.14 to $2.54 for a fifth, which is a 750-milliliter bottle. Overall, the higher taxes would raise an estimated $60 billion over 10 years.
_Sugar-sweetened drinks tax: There is no current federal tax on these drinks. The Senate Finance Committee proposed a tax per 12 ounces of these beverages, but did not specify a figure. It would cover carbonated and noncarbonated drinks sweetened with sugar, high-fructose corn syrups and similar sweeteners. These would include sodas, iced teas and coffees, energy and sports drinks, fruit and vegetable drinks, and flavored milks. It would not apply to artificially sweetened drinks. A tax of 3 cents per 12 ounces of beverage would raise an estimated $50 billion over the next decade.
Note: Revenue estimates are from a report by the nonpartisan Congressional Budget Office.
