Better Alcohol Policies Save Lives and Prevent Alcohol Harm
New Mexico faces an ongoing crisis due to alcohol harm, reports the University of New Mexico (UNM). The state ranks among the top five in the U.S. for alcohol-related fatalities, with alcohol involved in 40% of all fatal traffic crashes, according to the New Mexico Department of Public Safety.
In 2020, alcohol caused 1,878 deaths in the state – nearly three times the national average.
Therefore, increasing alcohol taxes is one of the most effective prevention policies to address this crisis.
Higher Alcohol Taxes Save Lives
Raising alcohol taxes is a proven method for preventing and reducing alcohol harm. Research from the University of New Mexico (UNM) shows that states that increased alcohol taxes, such as Illinois, Maryland, and Alaska, experienced fewer alcohol-related fatalities.
This aligns with broader evidence demonstrating that higher taxes reduce excessive alcohol use, lower crime rates, and decrease alcohol-related disease.
New Mexico’s Alcohol Tax Has Lost Its Effectiveness
New Mexico currently applies an excise tax of about 40 cents per gallon on alcohol. However, according to UNM, this tax has not kept up with inflation, reducing its impact over time. Alcohol is becoming more affordable in New Mexico because the alcohol tax is not keeping up with inflation.
In fact, the real value of alcohol taxes in the state has declined significantly, resulting in falling revenue and growing alcohol harm. Furthermore, as Movendi International highlights, New Mexico has some of the lowest alcohol tax rates in the U.S., with beer taxed at only 4 cents per beverage, and wine and spirits at 7 cents. These low rates fail to address the public health crisis.
Evidence-Based Alcohol Tax Policies Maximise Health Promotion
To increase effectiveness, experts propose different tax models:
- Ad Valorem Tax: A tax based on a percentage of the total purchase price. For example, a 10% tax on a $15 alcohol product would add $1.50 to the cost.
- Tax Based on Alcohol Content: Instead of taxing by volume, this model places higher taxes on products with higher alcohol content. For instance, cheap, high-strength alcohol beverages, which are consumed in larger quantities, would face higher taxes and become less affordable.
Implementing these tax models would significantly improve alcohol policy efforts to protect people from harm and promote health by making alcohol less affordable, while generating revenue for public health initiatives.
Beyond Traffic Crashes: The Broader Benefits of Alcohol Taxation
A higher alcohol tax would not only reduce alcohol-related crashes but also prevent other harms.
Alcohol use is a leading risk factor for domestic violence, crime, and liver disease. New Mexico has one of the highest rates of alcohol-related liver disease in the country, yet legislative action has often undermined public health recommendations. Increasing alcohol taxes could help stop this crisis by reducing population-level alcohol use and harms.
Economic benefits also support tax increases. A study found that raising alcohol taxes by 5 cents per beverage in five U.S. states, including New Mexico, led to net job creation.
This scientific study shows that raising alcohol taxes contribute to local economies.
Will New Mexico Take Action?
UNM researchers have presented these findings to the New Mexico State Legislature, emphasising the need for policy change. Evidence shows that alcohol taxes effectively prevent harm without imposing undue burdens.
With one in five working-age deaths in New Mexico linked to alcohol, policymakers have an opportunity and responsibility to prioritise preventing harm and promoting health. Raising alcohol taxes is an evidence-based, cost-effective solution that can save lives and create healthier communities across the state.