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Rep. Lynn &
US Senator Henry Hyde

Alaska State Legislature
24th Alaska State Legislature
The 24th Alaska State Legislature
Alaska State Representative Bob Lynn
Opinion-Editorial

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Milk Tax Wins My 'That's Incredible Award'
by Representative Bob Lynn
Alaska State Legislature
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Released:
July 1, 2004
Published:
Anchorage Daily News
July 1, 2004


"Greedy Outside dairy leaders and the Washington wonks that come up with goofy taxes like this don’t have a clue to the effect in Alaska – and worse, they may not care."
- Rep. Lynn

 

Just when you think you’re safe from taxes, tax addicts in Washington strike again! This time it’s - are you ready? - a ''milk tax.'' Big Outside dairy co-ops and milk processors are attempting to make milk in Alaska more expensive than it already is.

Under current federal law, Alaska is a ''milk deficit'' state, meaning we don’t have surplus milk production. Therefore, Alaska isn’t presently required to participate in the 1983 tax passed by the United States Congress to fund a generic advertising program aimed at increasing consumption of milk in the Lower 48 to reduce milk surpluses. Unfortunately, the ''cure'' has proved more damaging than the ailment.

Understandably, most Lower 48 dairy farmers oppose the mandatory 15-cent per hundredweight assessment on milk. They never got a chance to vote on the tax and, like so much other Rube Goldberg economic engineering schemes, it causes more problems than it cures. Not surprisingly, the Lower 48 milk tax is under attack in federal courts by dairy farmers who believe it violates First Amendment free speech rights.

If the tax is a problem Outside, consider the effect of such an onerous milk tax in Alaska. It’s scary. The milk tax will harm everyone in Alaska, but most especially children, the elderly, and the poor. The harm to health that would result in Anchorage, would be multiplied a zillionfold in Bush communities. The milk tax will lead to more dental cavities for our kids by driving them to drink more soda pop. By consuming less dairy calcium, seniors will be more vulnerable to osteoporosis (brittle bone disease), hypertension, and other health problems. This translates to increased health care costs, and an even larger fiscal deficit than we suffer now.

Greedy Outside dairy leaders and the Washington wonks that come up with goofy taxes like this don’t have a clue to the effect in Alaska – and worse, they may not care. They want to tax our school kids’ milk and drive up the cost of school lunches. They want to drive up the already high price of ice cream and cheese. Milk is an essential ingredient in all manner of food, and the price of that goes up too. And who will benefit from this tax? Not Alaska, but the Feds. Milk must never become a drink only for the wealthy.

To its credit, Congress exempted Alaska and Hawaii from the milk tax because we were – and still are – milk deficit states that don’t contribute to a dairy surplus problem. What part of ''exempt'' don’t these people understand? Nothing has changed in the last two decades to justify removing Alaska from the milk tax exemption. We needn’t be ''fixin’ something that ain’t broke.'' If Washington politicians want to continue this crazy milk tax scheme in the Lower 48, please be our guest. We’re talking about helping to keep milk affordable for our kids, the elderly, and everyone else.

You have my commitment, as a State Legislator, to do everything I can to make sure the milk tax never sees the light of day in Alaska (even on the Summer Solstice). Stop the milk tax now. That means working with our Congressional delegation, other like minded legislators, Native leaders, and concerned citizens like the Alaska Dairy Coalition, schools, day care centers, and others. You can help by calling our congressional delegation, and your Alaska legislators. I urge every commonsense Alaskan to go on record against the milk tax.

Alcohol and tobacco taxes may be debatable, but a milk tax? That wins my Bob Lynn ''That’s Incredible Award.''

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