No New Beer Taxes?

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Social service groups are looking at increasing the state's beer tax but the governor says she will not back it, at least for now.

Hiking the state beer tax by two cents a bottle would raise $43 million new dollars that could be used to restore funding to adult education and other social programs. That from the lobbyist for the League of Human Services Sharon Parks.

Parks says the suds tax has not been raised since l966.

And there's a good reason for that says lobbyist Mike Lashbrook for the beer wholesalers, its already too high and will actually result in fewer dollars for the state. That's because drinkers along the state's border will go into Illinois, Ohio or Indiana to buy their beer for less.

Gov. Jennifer Granholm meanwhile says she does not back the increase but concedes, "everything's on the table if we go to war and our economy goes into a severe tailspin."