Allegheny County, Pennsylvania, Drink Tax Debate

Pittsburgh, Pennsylvania -- In mid 2007, Allegheny County chief executive Dan Onorato was faced with a dilemma. In the county budget, the Port Authority of Allegheny County faced a $30 million dollar deficit. This $30 million was necessary because to get matching funds from the state, the county would have to fill in this hole immediately. Many ideas were bantered about to raise revenue. Onorato traveled to Harrisburg to lobby for state approval for the ideas.

The state, though, only approved two options. These were the two options that Philadelphia got when they did the same thing. The first was a tax of 10% placed on the price of poured alcoholic beverages and a $2 per day increase on car rentals inside allegheny county. The other option was a slight increase in the county property tax that averaged out to around the area of $50 dollars. Despite fierce resistance from the local bar and restaurant association and patrons of different establishments, the county went with the drink tax option and the motion passed in December 2007 with a 11-4 vote.(All 10 Democratic and one Republican councilpeople voted for the tax).

The backlash was more than Onorato expected. Many in the media dubbed him "Dan Dan The Tax Man", while bar and restaurant owners hung posters of Onorato and the county councilpeople outside lettin customers know that these people couldn't be served. Onorato defended the tax saying that he held the line on property taxes since he became the county executive several years before. He also admitted that the drink tax was not a good tax, but it was better than a property tax increase. In first quarter estimates , the revenue collected has exceeded the projected amounts. Even though the Port Authority has been a horrible steward of their finances, they cannot receive the money rasied until the proper cuts are made in management ,union employees, route cuts and fare increases.

While some councilpeople in the minority Republican membership have called for a reduction to 5% or a repeal. Many people now are calling for a referendum on the ballot to keep or repeal the drink tax. I believe the tax should stay as is. While any tax is a bad idea, especially in this period of time where gasoline and other expenses are skyrocketing, it is a voluntary tax. A person who decides not to have a beer does not have to pay the tax. This is a consumption tax where only a segment of society is penalized while property taxes are invoulantary and would hurt everyone equally.

Many people such as the elderly and the lower middle class cannot afford higher taxes. I understand the concerns of the restaurant owners and bar owners who have lost revenue on banquets and restaurant tabs due to the tax, but the property owners take precedence over them anytime. I know this is wishful thinking but hopefully one day the county will one day do that one thing that politicians hate to do, which is use common sense and cut wasteful spending. But until that time the tax must stay.