California IN BRIEF : SACRAMENTO : Governor Opposes Liquor Tax Measures

Gov. George Deukmejian announced his opposition Saturday to two initiatives on the November ballot that would raise taxes on liquor, saying higher taxes would only further slow the state’s economy. “At a time when the federal government is grappling with its own budget deficit and considering higher taxes, we should exercise great caution in imposing any new taxes here in California,” the governor said in announcing his opposition to Propositions 126 and 134 during his weekly radio address. Proposition 134, which is sponsored by public interest and law enforcement groups, is known as the “nickel-a-drink” tax by supporters. Proposition 126 would impose a smaller tax on wine, beer and distilled spirits and is supported by the liquor and wine industry.