Alcohol tax will help many.

Byline: James J. O'Day

COLUMN: As I see it

Substance abuse remains a persistent problem in Massachusetts, and the state has struggled to keep pace with demand for services such as detox beds, jail diversion and underage drinking prevention programs, and counseling services for people dealing with addictions. Since the state budget crisis of 2003 forced the closure of many support programs, Massachusetts has never recovered the level of services that are needed to address this important public health problem.

In June, the Legislature approved a measure to eliminate the sales tax exemption for alcohol purchased in package and grocery stores. At the same time, to meet our fundamental obligations in education, public safety and health care, we chose to raise the sales tax to 6.25 percent.

Legislators carefully weighed the economic consequences of the budget and revenue measures, particularly as they affect low- and middle-income Massachusetts residents. However, according to the Bureau of Labor Statistics, following two increases in 1985 and 1991 that brought the alcohol tax up to about 12 cents per drink, there was a slight dip in business from 1990 to 1991. But the industry recovered quickly and recorded substantial growth in the 1990s.

Critics of the tax argued that Massachusetts residents would simply drive out of state to make their alcohol purchases, thereby hurting local businesses. However, New Hampshire already has a higher state excise tax on beer than Massachusetts, and the difference per beer between the two states will be less than 2 cents, which is hardly worth the difference when the cost of gas has risen to more than $2.50 per gallon.

The alcohol sales tax exemption made Massachusetts an outlier in terms of public and health policy. Only six states did not have a sales tax for alcohol in retail outlets. Massachusetts ranked second in alcohol consumption among all states.

Even with the increased sales tax, Massachusetts will have the second lowest tax on alcohol in New England.

Massachusetts is regrettably a national leader in alcohol consumption and illicit drug use. As a result, one in five people who suffer from alcohol and substance abuse problems cannot find openings at programs for counseling, medical care, and employment assistance. Without continued funding, the number of people unable to find help will only increase.

People with substance abuse problems bring a greater cost to every community. Substance abuse is a disease and makes those with it more susceptible to other medical issues - other costs - like diabetes, cirrhosis of the liver, hepatitis and hypertension, to name just a few. Other associated costs often ensue: domestic violence, child abuse, drunken driving, incarceration rather than treatment, and overcrowded and overused emergency rooms. What about the cost to the families of the commonwealth who find themselves having to deal with all of these associated issues?

The repeal of the tax exemption is a small price to pay when there are so many in need of assistance for substance abuse. The additional tax is pocket change for many, but would effectively aid the needs of public-health programs which contribute to addiction prevention, treatment and recovery services.

In a 2009 poll, nearly 60 percent of adults in Massachusetts supported increasing alcohol taxes provided the funds are dedicated to substance abuse treatment and prevention programs. For many, the elimination of the sales tax exemption should be easy. It is estimated that one-third of Massachusetts residents do not consume alcohol - a whole third of our state population that will be unaffected.

In addition to funding services, research has proved that tax increases on alcohol are a deterrent to underage drinking and binge drinking. Low prices on alcoholic beverages increase their availability, especially to young people who have proved to be sensitive to minimal increases in alcohol prices. An extensive amount of research confirms that underage binge drinking decreases in proportion to the increase in taxes on beer.

With the governor's approval to repeal the alcohol tax exemption, Massachusetts will join the rest of the nation and sustain critical public health services.

State Rep. James J. O'Day of Worcester is a member of the Joint Committee on Mental Health and Substance Abuse and a licensed social worker.