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Recovery in the News

SPEAK OUT: Alcohol tax offers chance to raise cash, reduce alcohol abuse

Vic DiGravio & Maryanne Frangules
The Patriot Ledger
April 18, 2009

QUINCY — At last week’s Revenue Committee hearing at the State House, there was little news to cheer about. The hearing kicked off a series of opportunities for legislators to determine the state of the state’s fiscal plight. It also provided an important forum to hear about the human cost of budget cuts during the recession.

On the South Shore and across the state, budget cuts are having a devastating effect.

Even before the debate on eliminating the state alcohol tax exemption at package stores, Massachusetts faced the prospect of growing numbers of people with alcohol and substance use disorders lacking access to services. Nearly one of every five people who need such help are unable to find openings at programs offering counseling, medical care and employment assistance. But a crisis can translate to opportunity. This antiquated tax loophole combines smart fiscal policy with an urgent public health need.

Unfortunately, our state is a national leader in alcohol consumption and illicit drug use. We have the second highest rate of alcohol consumption among all 50 states. Opiate drug use has doubled in the last 10 years. We are second in adolescent drug use and fifth in illicit drug use for all ages.

Repeal of the sales tax exemption will raise an estimated $92 million. A recent poll found 58 percent of state residents support the measure if the funds are dedicated to addiction prevention, treatment and recovery services. Without the revenues, these services, which are already inadequate, will be slashed even further.

Tax policy influences behavior, and in this case, the governor and Legislature have an opportunity to make positive changes. A recent study by the University of Florida concluded that higher state alcohol taxes in Alaska significantly reduced alcohol-related deaths in that state over a 28-year period. There is no similar data for Massachusetts, because the state has not raised alcohol taxes in decades. There is also a wealth of research that shows teenage consumption of alcohol is reduced when alcohol is taxed at a higher rate. Adolescents are much more sensitive to even minor price increases and therefore don’t drink as much when taxes are imposed.

On the positive side, the Department of Public Health’s Bureau of Substance Abuse Services, working with community-based treatment providers and the recovery community, has built a network of successful programs. Addiction treatment services consistently rate higher in Massachusetts than in similar programs across the country. National figures show that the change in employment status of clients from admission to discharge in such programs improved by 41.1 percent in Massachusetts, as opposed to 15.3 percent nationally. This is a demonstration of how treatment works to build recovery. The outcome: individuals who value being productive members of our communities.

As a state, we are making tremendous progress. That is why our organizations, along with more than 60 other local and state groups, have formed the Campaign for Addiction Prevention, Treatment and Recovery to actively fight for the repeal of the sales tax exemption.

Repealing the sales tax exemption on alcohol can save the tremendously successful community programs serving and saving individuals every day. We urge the Legislature to join the governor in acting to combat the epidemic before us, the epidemic we can beat if given the resources.

Vic DiGravio of Quincy is head of Mental Health and Substance Abuse Corporations of Massachusetts Inc. Maryanne Frangules runs the Massachusetts Organization for Addiction Recovery.

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