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Friday, September 23, 2011

Beer and Government – Drink up! You just bought a home!

By Flavio Fiumerodo

As I type this rant, I am sitting here in the State Board of Equalization’s office in Ventura where I just handed them a check for $5581 in sales tax. Today is a special day, a little victory for me. You see, moments before I walked in and paid my final sales tax to the state of California, I dropped in the mail my paper work to dissolve my company and wind down. Why? Was it because I’m retiring? No. Was it because I was unable to do business for lack of sales? No, it’s slow but there are opportunities to pursue.

The answer is that I have taken the steps to close my company because I no longer wish to pay the $800 tax that every corporation or LLC must pay in this state for the privilege of existing in this state -profit or not. Atlas, has once again shrugged. I don’t work just so I can hand it over the government.
But the story gets more interesting… A few days ago, I ordered a couple of Newcastle beers at a bar and the total came to $18. Alcohol is expensive and more-so than it needs to be were we to have a truly free market.

You see, as I walked over to the register at the State Board of Equalization (what do they equalize anyway???), I noticed a sheet of paper posted on the wall. It was the public notice for an auction of a liquor license. Yep, if you want to sell alcohol in this state, you need permission from the government. What many people don’t know is that the state actually limits the number of liquor licenses it will issue. Ostensibly, it’s to prevent liquor from being sold at the local dry cleaners or while you wait at your accountant’s office. Imagine the pandemonium. FULL STORY





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