Wow!!
Taxes, Taxes and more Taxes.
I was travelling last week to Iowa for a family visit. My thoughts were all over the board from business because it feels like the calendar should be reading April instead of the middle of May.
Business was up in January, flat in February, and down in both March and April. Overall our sales are flat compared to last year.
The next thought came as I was crossing the border to Iowa (Could also be Wisconsin, North Dakota, South Dakota, heck even Manitoba).
I imagined several large liquor stores, cigarette shops and gas stations and even the state governments putting up billboards to "Thank all of the members of the House, Senate, and the Governor for voting to increase all of the taxes by 2 billion dollars" and to run to the border, any border, and save $.
The idea of raising cigarette taxes is to have people stop smoking and be healthier, (a noble thought).
A small percentage will.
But those who smoke will travel and purchase their cartons in neighboring states.
This is already happening.
I have a couple of customers who drive to North Dakota and purchase 10 cartons of smokes and charge it to earn cash back on their credit cards.
The impending alcohol tax makes this is a strong reality and the local sales and tax will be out of our state along with profit dollars for our cities.
Here are some opinion articles posted by a local beer distributor, former MMBA director Bob Leslie and current MMBA director Toni Buchite.
Click Here to See Beer Distributor Article
Click Here to See Bob Leslie Article
Click Here to See Toni Buchite Article
Michael Friesen
Hawley Liquor
(Editor's Note: This edition of the newsletter is being sent early due to the upcoming legislative tax debate and MMBA Annual Conference) |