Get government out of the liquor business | Editorial

Both of the dueling liquor-related initiatives that will be on the ballot this November make a lot of sense. If either Initiatives 1100 and 1105 were to pass, the state of Washington will no longer be in the business of selling bottles of Southern Comfort, Jack Daniels and Hennessy to those who can afford the giant markup. The odd and illogical division between where adults can buy hard alcohol and where they can buy beer and wine will disappear. Grocery stores and other retail businesses will benefit from increased sales.

Both of the dueling liquor-related initiatives that will be on the ballot this November make a lot of sense. If either Initiatives 1100 and 1105 were to pass, the state of Washington will no longer be in the business of selling bottles of Southern Comfort, Jack Daniels and Hennessy to those who can afford the giant markup. The odd and illogical division between where adults can buy hard alcohol and where they can buy beer and wine will disappear. Grocery stores and other retail businesses will benefit from increased sales.

The main concern with the initiatives is revenue reductions for state and county government due to the elimination of the markup, and in the case of I-1105, the liquor excise taxes as well. Granted, it’s really bad timing, with the state and many local government facing supersized budget deficits. The Island County budget director reports that Island County would lose $170,000 a year under I-1100 and $265,000 a year if I-1105 passes. The county is in the process of cutting $2 million from a budget that’s already pared to the bone. But government officials can’t expect voters to support a flawed system simply because it raises convenient cash.

Some have argued that the purpose of the taxes and markup is to help offset the considerable costs that alcohol abuse creates for state and local governments. If that’s so, the money generated in the county should be earmarked for things like deputies, health care or the Impaired Driving Impact Panel of Island County. And brave lawmakers, if there is such a thing, can always create new, fair excise taxes on all types of alcoholic beverages and funnel the money to the many services impacted by the use of alcohol.

When it comes to choosing between the two initiatives, I-1100, also known as the Costco initiative, is the best choice. I-1105, which is supported by liquor distributors, keeps the state’s tiered system and the mandated middleman intact. And that’s something we don’t need.