News & Events

February 22, 2010

        Throughout our history "mom & pop" entrepreneurship has been the cornerstone of our economic success. As downtown revitalization has come to the forefront once again throughout America, the proposal by Governor Paterson to allow wine to be sold in "Big Box" stores, has become a very contentious issue. Several owners of local liquor stores have contacted me because to them Governor Paterson’s plan is a death sentence. The Governor meanwhile, drowning in a sea of State debt ($15.4 billion), sees his plan as generating millions in new franchise fees. Last year his proposal was killed by the State Legislature, so this year the Governor has "sweetened" his plan by proposing to allow the 2,700 independent liquor stores throughout New York State to sell snack foods, newspapers and open multiple locations. The Governor also wants to boost the wine excise tax from 18.9 cents to 51 cents a gallon, almost triple. Does the benefit of the Governor’s proposal outweigh its costs?

I think not for the following reasons:

1) A Cornell study conducted by Assistant Professor of applied economics Bradley Richard indicates that liquor stores stand to lose between 20% - 30% of their business if wine were allowed to be sold in grocery stores. Thousands of local jobs would be lost not only by local store owners, but also by their distributors.

2) Allowing wine to be sold in an additional 19,000 outlets statewide will most assuredly result in an increase in underage drinking. As access increases, so will use and abuse. We should seek to maintain small businesses that can more efficiently oversee the distribution of a controlled substance.

3) While the "Big Box" corporations attract all of the attention, America runs on small businesses which employ over half of all private sector employees in our country and have generated over 64% of new jobs in the past 15 years.

4) Permitting small liquor stores to sell food, newspapers, etc. is inconsequential because many share shopping plazas with grocery stores that have non-competition agreements.

5) Allowing the owners of small liquor stores to open multiple locations is virtually meaningless. What bank is going to give a small business a loan, whose largest selling product is now also being sold in a "Big Box" store at cheaper prices?

6) Tripling the excise tax on wine is another of Governor Paterson’s series of proposed regressive taxes which puts more and more of the tax burden on middle class New Yorkers, who are leaving the State daily.

I urge you to contact Assemblywoman Ellen Jaffee, N.Y.S. Senator Thomas Morahan and Governor David Paterson urging them to safeguard the "Mom & Pop" liquor stores throughout the State and in Rockland County. Why not allow liquor stores in New York State to sell beer, before allowing Walmart to sell wine, and put many "mom & pop" stores out of business.

Christopher P. St. Lawrence