Study: Higher alcohol taxes reduce alcohol-related deaths, disease, crime

SALT LAKE CITY — A new study published by the American Journal of Public Health finds that increasing the costs of alcoholic beverages would decrease rates of alcohol-related illness, injuries, crime and death.

States that employ public policies that increase alcohol excise taxes will see a decrease in drinking and inevitably a reduction in the negative effects connected with alcohol consumption, according to researchers at the University of Florida.

"Simply adjusting decades-old tax rates to account for inflation could save thousands of lives and billions of dollars in law enforcement and health care costs," says Alexander C. Wagenaar, Ph.D., lead author of the study. "Tax increases," he added, "may be the most effective way we have to prevent excessive drinking."

The study estimates that doubling the average existing state tax on alcohol would result in a 35 percent reduction in alcohol-related deaths, an 11 percent reduction in deaths incurred in traffic incidents, a 6 percent reduction in sexually transmitted diseases, a 2 percent reduction in violence and a 1.4 percent reduction in crime.

State Rep. James Dunnigan, R-Taylorsville, who sponsored an alcohol-related bill in the 2009 legislative session, said he had not considered increasing taxes on alcohol as a means of deterring alcohol-related incidents and illness. Dunnigan said he would like to see a reduction in the number of tavern and bar licenses, where people are not required to buy food, and an increase in liquor licenses for restaurants.

The new study relied on a previous one in which researchers found that a 10 percent increase in the price of alcohol results in approximately a 5 percent reduction in alcoholic intake. Wagenaar said that "these two studies establish beyond any reasonable doubt that, as the price of alcohol goes up, alcohol consumption and the rates of adverse outcomes related to consumption go down."

Utah is different from most states in that it is a "control state," meaning retail and wholesale distribution of alcohol is regulated by the state. There are 18 control states. According to the annual report published by the Utah Department of Alcoholic Beverage Control (DABC), alcohol consumption in control states is significantly lower than in non-control states.

Vickie Ashby, DABC administrative secretary and public administration officer, declined to comment on whether or not increasing alcohol taxes in Utah would be beneficial because her department does not set liquor prices; prices are set by the state Legislature.

"Utah has very strong existing liquor laws," Ashby said, "and a very strong enforcement of those laws."