Schwarzenegger outlines alcohol tax plans

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by Change | 7 Nov 2008

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Arnold Schwarzenegger has announced that taxes on all alcoholic drinks in California are to be increased by five cents.

Plans put forward by the state's governor to raise taxes on beer, wine, and distilled spirits are a positive step towards tackling alcohol abuse in the state, it has been claimed.

According to alcohol industry watchdog The Marin Institute, the proposals will help reduce California's budget shortfall while providing support to alcohol rehabilitation programmes.

The initiative is expected to raise over $878 million (£557.6 million) in the next year.

Michele Simon, research and policy director at the organisation, said: "Each year thousands of lives in California are cut short or forever damaged due to alcohol.

"For too long, the alcohol industry has avoided paying its fair share of taxes."

Executive director of the group Bruce Lee Livingston added that the move is the change needed to fix the budget and said the institute is in full support of the proposals.

This week, the UK Department of Health announced plans to provide £6 million of government funding to support alcohol rehabilitation facilities in areas of the country worst hit by alcohol abuse problems.

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