The governor and the legislators are not being straightforward with the citizens of Pennsylvania in regard to how much more wine and spirits will cost under privatization.
The present system purchases in large quantities and has a warehouse and distribution system that is the envy of most large supermarkets. This saves cost, something an independent will not be able to do. The owner of a beer distributor will have to add the higher cost, repayment of a loan for $82,500 for buying a license, plus his cost to have more employees, and add a reasonable profit.
An independent purchaser buying a license to sell wine and spirits would pay $397,500 and will have to add even more to the cost of the wine and spirits.
My wife is a former owner of a beer distributorship and I cannot see too many present owners having the money, space or the will to purchase a license for $87,500 plus what he pays for a beer license. I can envision the cost going up 40 percent to 50 percent.
A better idea would be to improve the system we have by adding more stores, opening some in the supermarkets and selling more Pennsylvania wines. They could increase the tax by 2 percent and gain more revenue than the sale of the system will bring in.