Monday, March 9, 2015

Why can't PLCB supporters do math? Or research? Or think for themselves?

I've made a number of posts on problems the PLCB supporters have with math: the "Why Johnny can't read or do math" series parts 1-3 and the "Wanna talk about Washington" along with the last week "The UFCW 1776 thinks that PLCB profit is less than minimal - We knew it all along."
The comments in some of the posts or the information provided by the supporters themselves proves that they still can't do math, or research their position with any degree of accuracy.

Let's take the main point in the comments that a newspaper story reports that the Washington State Office of Financial Management says that revenue collection was nearly $369 million in revenue for the incomplete (at that time it was written) FY 2014. Thus proving that privatization didn't work because it was less than the $448.7 million the state got in the last year of state run operation in 2012.

The only problem is that whoever fed our poster his info didn't look into the numbers at all. The $448 million also included $103 million in Wine and Beer taxes that aren't included in the newspaper's OFM story.  Also, the 2012 numbers include the one time input of $31 million received for about 160 state state stores that were sold. Lastly the story doesn't mention the change in the high beer tax rate which took place on July 1st 2013 which makes sense since they weren't part of the $369 million revenue collected.  The tax rate was lowered from $23.58 per barrel to $8.08 per barrel, a 291% reduction, decreasing the beer tax collected by over $47 million.  That beer tax reduction was not part of privatization. 

If you want to compare apples to apples then lets look at the last year of state run operation, use the total contribution to the state and local governments take out the wine and beer taxes and compare it to FY 2014 totals minus beer and wine taxes.  The 2012 total comes out to $448.7 million minus $103.1 million gives us $345.6 million and the 2014 total comes to $201.7 million minus $54 million in the wine and beer taxes (1) plus $267.4 million in liquor taxes  (2) which then totals $415.1 million and is still more liquor taxes collected than the last year of state run stores.  Remember that the 2012 total had an extra $31 million from selling the state stores.

I know, it is hard to imagine the Pennsylvania Legislature lowering taxes of any sort, but Washington is not Pennsylvania. I pointed this out in my posting "Washington is not equal to Pa"  In short, the continued lack of veracity by those who continually post in favor of the PLCB needs to be questioned at every turn, as they have proven they will twist and turn and outright lie when give a chance

Can there be any doubt that Washington is making more money without their state stores?

We deserve better than new "modernization" lipstick on the state store pig. Privatize and get the government out of retail and back into regulation where it belongs.

Let the free market rule, not the PLCB.

(1) WALCB annual report 2014 page 17
(2) the OFM report on I-1183 gives a slightly different number of $268.6 million due to ending on a different day.
Original post was updated; the Legislature changes taxes, not the PLCB. 


Anonymous said...

Cannot ... even... begin... dialogue... because... you.. think... PLCB ... regulates... taxes... HA HA HA HA

Lew Bryson said...

Hey, you got us there! Just typing too fast. It's been fixed. We have no problem admitting when we make a mistake about this stuff -- unlike Wendell and his gang, and the Democrats in the Legislature -- it just doesn't happen very often...

Albert Brooks said...

You never know when the PLCB will suddenly re-interpret things without any legislative approval but yes I did make a mistake. Otherwise you have nothing to disprove any of the above - correct?

Rex Cavett said...

Seems like the PLCB only goes backwards, not forwards. The "outlet store" concept actually was scrapped around 2008 or 2009 except at two stores: Washington and Hermitage, both in the Pittsburgh area. Despite at least two other PLCB stores (Franklin Mills and West Goshen) still having outlet store signage, neither have had outlet merchandise for a long time.

Why not? I guess most people weren't impressed with the very, very lazy "effort" of the PLCB to do SOMETHING to slow the border bleed. Why go to an otherwise ordinarystate store to get "good deals" on liter items and nothing else, when much larger stores over the border have deals on almost everything?

Albert Brooks said...

There are 4 stores down from 6, that are still listed as carrying "outlet" products although 2 of them, West Chester and Shrewsbury are listed as Premium Collection Stores too.

The "Outlet" format only screwed PA residents since those products weren't allowed to be ordered nor were they available to bars and restaurants unless they wanted to drive to one of the outlet stores. The distances involved negated any savings so it turned out to be a subsidy for those close enough who could get to them. Just another way the PLCB fucks over small businesses and residents.