Trouble Brewing

(Fox News) - A battle is brewing in Oregon after five state lawmakers suggested a 1,900 percent increase in beer taxes to help cope with budget shortfalls. Media reports say the legislation would increase the tax on a barrel of beer from $2.60 to almost $50.

The lawmakers say the increased revenue would help offset the costs of alcoholism in lost earnings, law enforcement and health care expenses. But brewers say the tax would cripple their business and not raise enough to justify the increase.

Says Mike DeKalb of Laurelwood Public House & Brewing Co., "If that tax is passed it would mean consumers would pay $315 million more (in 2009) to buy the same amount of beer they bought in 2008."