Cheap Beer?

Despite a lackadaisical 2025 Missouri legislative session with long pauses in progress, the guts of one interesting bill slipped by me.

I wrote off House Bill 1041 [Dale Diehl, R – Butler] as a mix of MAGA jingoistic piffle and tourism board hype.  Two main items in the piece stood out: a legal tax preference for “American beer” and allowing bars to be open till 5:00 a.m. (then, reopening at 6:00 a.m.) during the World Cup next year.

Back at the turn of the Century I chaired the Missouri Advisory Council on Alcohol and Drug Abuse, a very time-consuming volunteer state appointment.  A dedicated state employee made that spot interesting.  Born in Nazi occupied Holland, Gerrit DenHartog matriculated at prestigious European universities then came to this county.  By chance or whim (I could never decide) he rose to be our state’s expert on drug and alcohol policy.  In an age when most deemed alcoholism a choice, he strongly supported researched-based treatment of a medical condition. 

Looking at this state he noticed that Missouri had the second lowest tax on beer in America and excise taxes for wine and spirits ranked way below the national average.

For years he – with the advisory council’s support – pushed for a “penny a drink” increase in alcohol taxes.  That would boost the beer tax from 6¢ to 14¢ a gallon.  The funds could support local match for federal dollars for treatment and prevention programs, as well slip bucks to Medicaid to offset some of the cost of treating alcoholism’s impacts.

As expected, the push back would stop a charging tank.  You see, the Missouri legislature received free beer delivered to their offices on a regular basis from the world’s largest brewer (back then).  Many of us witnessed school children at the Capitol herded off elevators so free beer could be delivered faster.

Now, part of the organized argument against the beer tax jump would be that it would hurt Joe Sixpack.  That was a flat-out lie.

Back then Daily Planet on Euclid in the Central West End had ‘local’ editions of the Sunday Washington PostChicago Tribune and other major papers for sale on Monday or Tuesday.  Circulars and print ads from those papers attested to places with higher costs of living, higher union delivery wages and higher beer taxes nonetheless selling beer for $1.00 a case – or more – cheaper than the best St. Louis price for the same brand, size, quantity, etc.

Despite the evidence the legislature never even gave penny a drink a fair hearing.

Back to HB1041.  Over the decades several states upped their beer tax.  Not Missouri.  Right now we rank 49 of 50 states in beer tax.

That changes on August 28, 2025.  Our used car selling Governor Mickey signed good old 1041, dropping the excise tax on American brewed beer by 67%, down to about 2¢ a gallon.  (Foreign beers such as Corona and Guiness will still pay 6¢.)  The state’s bureaucrats expect that to trim state revenue by another $4 million a year.  (Remember, Missouri has serious revenue issues already.)

After an intriguing life Gerrit passed two years ago.  I’m happy he didn’t have to see this new example of The Missouri Way.

 

Glenn Koenen