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Trying to understand state excise taxes on beer.

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passlaku:
I saw this posted the other day:
http://taxfoundation.org/blog/monday-map-state-beer-excise-tax-rates-0



A slight correction of the numbers are here (from the Beer Institute):
https://www.documentcloud.org/documents/325601-excisetaxrate.html

I was wondering what you guys thought might make these tax rates vary by state? Let me tell you that I punched these numbers into SPSS (stats software), used OLS regression, and found that %Christian, %liberal, perCapita car fatalities, property tax rate, and #breweries per state all had no effect.  It was all state level data.  I am leaving out of this explanation the one and only variable that had a coeeficient that was significant (it is positive and a can of worms).  I am thinking of writing this up, but am interested in including more "controls" or explanations that help us understand state excise tax policy.  What do you think the model is missing?  I should probably include medianIncome and maybe percapita # of breweries in the state. 

a10t2:
I don't think there's much mystery. States with breweries big enough to do substantial lobbying (CO, TX, MO, WI, PA) have low taxes.

passlaku:
Big breweries might matter but #of breweries doesn't.  Maybe I should get a figure for the number of brewery employees for each state.  The more people are employed by breweries then the lower the taxes on beer, right?

nateo:

--- Quote from: a10t2 on January 19, 2013, 01:43:21 PM ---I don't think there's much mystery. States with breweries big enough to do substantial lobbying (CO, TX, MO, WI, PA) have low taxes.

--- End quote ---

^ Nailed it. Except Wyoming, they just don't really have taxes there.

redbeerman:

--- Quote from: nateo on January 19, 2013, 01:48:38 PM ---
--- Quote from: a10t2 on January 19, 2013, 01:43:21 PM ---I don't think there's much mystery. States with breweries big enough to do substantial lobbying (CO, TX, MO, WI, PA) have low taxes.

--- End quote ---

^ Nailed it. Except Wyoming, they just don't really have taxes there.

--- End quote ---

Or people from what I remember.  Population density is the next to lowest in the country, next to Alaska.  Western Wyoming is beautiful.

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