is this the tax on soda? I actually like the idea - we drink way too much of it and it is leading to higher health care costs from obesity related issues like diabetes. The tax will have little effect on consumption but it could help offset the costs associated with the damage done.
No, it is a tax on beer, wine, or spirits. I have seen estimates of over $1.2 billion in lost retail sales, and it would hit my industry big, with the possibility of losing 14,200 wine-related jobs. My company, Gallo Glass, has already laid off 43 workers and although that seems like a small number in a tough economy, it is tough to take. I still run into these people from time to time and there are no good jobs out there and these people are really struggling. I am not an expert on economics, but isn't it a mistake to raise taxes in a recession, especially if it is going to result in the loss of jobs?
Oh - didn't know that it was another alcohol tax - as for raising taxes in a recession, it can be good to increase some taxes at the top to increase public works during a recession, similar to what was done in the Great Depression. It seems to me that some companies are using this downturn as an excuse to cut workers, their pay and benefits, especially union labor. You should look at Gallo's sales vs profit to see if they are suffering.
I am sure I will get a first hand look at that. Gallo is still very profitable, maybe more so as people turn to cheaper priced wines in a downturn, but they will use the broader economic problems to try and slash our wages and benefits. They already did it to the Gallo winery union in their last contract. The new trend is for companies to replace pensions with 401Ks, which is what happened to the Winery workers. I heard at my last union meeting a union brother from the hot end department talking about his wife who works at the winery and he estimates that his wife lost about a thousand dollars a month in their new contract, after you deduct the increase in health costs and the loss of a pension.
4 comments:
is this the tax on soda? I actually like the idea - we drink way too much of it and it is leading to higher health care costs from obesity related issues like diabetes. The tax will have little effect on consumption but it could help offset the costs associated with the damage done.
No, it is a tax on beer, wine, or spirits. I have seen estimates of over $1.2 billion in lost retail sales, and it would hit my industry big, with the possibility of losing 14,200 wine-related jobs. My company, Gallo Glass, has already laid off 43 workers and although that seems like a small number in a tough economy, it is tough to take. I still run into these people from time to time and there are no good jobs out there and these people are really struggling. I am not an expert on economics, but isn't it a mistake to raise taxes in a recession, especially if it is going to result in the loss of jobs?
Oh - didn't know that it was another alcohol tax - as for raising taxes in a recession, it can be good to increase some taxes at the top to increase public works during a recession, similar to what was done in the Great Depression. It seems to me that some companies are using this downturn as an excuse to cut workers, their pay and benefits, especially union labor. You should look at Gallo's sales vs profit to see if they are suffering.
I am sure I will get a first hand look at that. Gallo is still very profitable, maybe more so as people turn to cheaper priced wines in a downturn, but they will use the broader economic problems to try and slash our wages and benefits. They already did it to the Gallo winery union in their last contract. The new trend is for companies to replace pensions with 401Ks, which is what happened to the Winery workers. I heard at my last union meeting a union brother from the hot end department talking about his wife who works at the winery and he estimates that his wife lost about a thousand dollars a month in their new contract, after you deduct the increase in health costs and the loss of a pension.
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