Roll Back the Beer Tax - Essay Example

In 1991 the federal government imposed a tax on a range of luxury goods and that list included beer also (Rollback the Beer Tax: Online). Now is the time to roll back the beer tax as several valid arguments stand against its existence. Of the luxury items on which the tax was imposed by the federal government in 1990, the tax has been repealed on all with beer being the only exception (Rollback the Beer Tax: Online). Almost 40 per cent of the cost of an average beer can comprises of the taxes.

In fact, the tax on beer is far higher than on any other average consumer goods, which is not fair and rational. The tax on beer is regressive in nature and imposes more burdens on the lower and the middle class then the rich and the well to do (Rollback the Beer Tax: Online). Almost 50 per cent of the beer is purchased and consumed by the middle and the low-income classes, a segment that accrues less than one-fourth of the income created and earned by the total American population. So the tax on beer is arcane, regressive and in no way conducive for the economy.

It’s time to roll back the taxes on beer.