Oregon Public Broadcasting

The cost of many drinks would go up under a tentative deal struck by majority Democrats in the Washington Legislature. A tax package could pave the way to adjourn the legislature's overtime session.Legislative leaders are now shopping for votes for what they've informally titled the “Go home proposal.” A tax on beer and soft drinks replaces an earlier proposal to hike the general sales tax. The new budget balancing plan would raise the state's tax on mass market beers by 28 cents per six pack. Microbrews would be exempt. A new tax on soda pop would come to 2 cents per bottle or can. The plan would also extend Washington's sales tax to bottled water. It all leaves Washington Beverage Association president and bottler Tim Martin in need of a stiff drink. "We're already struggling in the tough economic times with volume. I know our volume is down this year again. Passing that tax hike on means raising prices. Raising prices means lower volumes, which means layoffs," he said.Higher taxes account for about a third of the solution to a $2.8 billion state budget deficit. The rest will be covered by program cuts and one-time federal money.

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Washington Legislature Washington Beverage Association