Privatization Plan Would Spark Tax and Price Hikes for Wine and Spirits

HERSHEY, Pa., Aug. 11 /PRNewswire/ -- A study of the real costs of State Rep. Mike Turzai's privatization proposal shows that taxes and prices for the most popular selling wines and many of the most popular selling spirits would increase dramatically.

A report by the United Food and Commercial Workers of PA Wine and Spirits Council – which represents the clerks in the state's 620 stores – shows that 31 of the 50 top selling wines would see a price increase averaging 24 percent and a tax increase averaging 106 percent.

The study also shows that 24 of the top selling spirits would see a price increase averaging 13 percent and a tax increase averaging 70 percent.

"The numbers don't lie," said Wendell W. Young, IV, Chairman of the Council and President of UFCW Local 1776.  "We've said all along that Rep. Turzai's figures are unreliable.   Anyone with a calculator and a little bit of time can run the same numbers that we did.  His scheme will raise taxes and raise prices for consumers."

Young released his report before testifying on Turzai's proposal this morning before the House Liquor Control Committee.

He added, "We recognize that some prices will drop and we point that out in our testimony.  But there are more losers than winners.  The sad fact is that Rep. Turzai has never bothered to look at what his scheme would do to consumers."

The study shows that under Turzai's plan, six of the 10 top selling bottles of both wine and spirits would cost more than they do today.

"It makes no sense to waste any more time debating this legislation," Young said.  "Rep. Turzai promised lower costs, but failed to deliver.  Lawmakers need to reject House Bill 11 and move on to serious issues confronting the Commonwealth, such as putting more Pennsylvanians back to work."

Young said that the Council compared current prices of the Pennsylvania Liquor Control Board to the prices that would result from Turzai's proposal.  The study was provided to the House Liquor Control Committee at its hearing this morning.

In addition to the study, UFCW also 'shopped' for Pennsylvania's 50 top selling wines and spirits in all of the states that border Pennsylvania and provided results to the Committee.

"I think it is about time that someone asked Rep. Turzai to offer some credible proof to support his statements about how privatization would result in lower prices to consumers," Young said.  "Our prices are competitive and our selection is far, far superior to most of the stores we visited in our border states.  Those are verifiable facts, not merely the expression of the kind of firmly held, but false, beliefs that Rep. Turzai uses to defend his scheme."

The UFCW of PA Wine and Spirits Council represents the members of UFCW Locals 1776, 23 and 27 who work in Pennsylvania's Wine and Spirits shops.

SOURCE UFCW PA Wine and Spirits Council