PLCB is $30 Million in the Hole

As Jay noted earlier, Auditor General Jack Wagner and a number of defenders of the current government monopoly argue that the Pennsylvania Liquor Control Board (PLCB) is a great profiteer for state government, “generating” millions for the commonwealth’s coffers.

A few big problems:

• Every dollar the PLCB generates is money taken from consumers and taxpayers.
• Opponents of privatization say the proposed gallonage tax is too high—but it matches current taxes, and Pennsylvania is currently one of the highest taxed states.
• The “profits” the PLCB generates (also an implicit tax from the government monopoly) aren’t really profits: The PLCB is transferring more than its revenue. The newest fiscal data from the PLCB shows that the agency ended the 2010-11 fiscal year with negative $31.2 million in net assets.

It is time we end this government business bureaucratic boondoggle.