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Excuse me sir, that rum and coke will be 23 bucks

September 18, 2010

Let’s talk about liquor.

Governor McDonnell wants to get rid of the state-run monopoly of the liquor business in Virginia(interesting how government is allowed monopolies huh?) claiming a windfall of profits for the state as we sell off licenses and real estate to private business. Is this a good idea?

In principle I say absolutely, the government has no business being in an industry that private business can provide. The problem with the plan(not my problem) is that it will most likely not reach the current levels of revenue that the public system currently earns(damn I hate talking about government like its a company). McDonnell predicts a windfall of $500 million, easily covering the $230 million Virginia currently rakes in from running its own stores, but critics believe this will fall way short. Having never seen the government ever predict money matters accurately, I would tend to agree with the critics.

So now to the fleecing. To ensure the profits reach current levels, McDonnell is proposing a fee on drinks served in restaurants(ever notice fee is not really that good a replacement for the word tax?). Check out this article:


The most striking thing about this article is that Dick Saslaw is opposed to a tax. Apparently the only bad taxes in the world are the ones your opposition proposes(man I hate politicians). All that aside….McDonnell, are you kidding me!?!

A tax on a mixed drink(well, more tax, we already pay sales tax on it)? Dude, if you are going to privatize an industry that should be private in the first place, I am all for it, we need less government anyway, but seriously, another tax? When did it become impossible for government to shrink?

If our politicians had any principles, the ABC stores would be privatized consequences to the revenue be damned. If the state doesn’t make enough money in the aftermath, oh poor babies, you might actually have to trim the fat off the budget.

So that’s where we sit, an additional fee on mixed drinks to make up for a shortfall that the governor predicts we won’t have in the first place, if so, why propose it. Sounds like someone doesn’t believe his own hype.

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