Colorado has some of the lowest alcohol taxes and highest drinking deaths. That’s no coincidence, experts say.
The Denver Post by Meg Wingerter, January 4, 2024: Researchers say higher prices can be effective in reducing alcohol consumption. Colorado’s taxes on alcohol are among the lowest in the country, and even though the state consistently ranks as one of the worst for drinking deaths, lawmakers have shown little interest in making beer, wine and spirits more expensive.
The state also taxes alcohol at a significantly lower rate than other “sin” products, with customers paying almost $2 in taxes on a pack of cigarettes — more than 20% of the cost, on average — compared to about 18 cents in taxes on a case of beer, or less than 1% of its cost.
Taxes clearly aren’t the only important factor, because some higher-tax states, like Alaska and New Mexico, still have elevated death rates. But experts say raising the cost of drinks is one way to curb consumption, along with reducing the number of locations selling alcohol and changing social norms around drinking.
Increasing the price of alcohol is particularly effective in deterring young drinkers, in the same way higher cigarette prices disproportionately turn youth away from smoking, with smaller effects on older users, said Dr. Bill Burman, former director of the Public Health Institute at Denver Health. But so-called sin taxes also send a message about risk, he said, and some studies found people cut their consumption after a state announced a tax hike but before it even took effect.
“We have evidence that we can have an impact,” Burman said.
This is the second story in The Denver Post’s four-part series examining why so many Coloradans die from drinking and the state’s failure to take action. This story will look at how the financial levers of taxes and state spending could help reduce deaths, while upcoming articles will focus on access to alcohol and treatment availability.
Read more from The Denver Post here.