Madison - The plan of Rep. Terese Berceau to raise Wisconsin's beer tax for the first time in 40 years is dead in the Capitol. But it's not dead enough for the Wisconsin Grocers Association, the Tavern League of Wisconsin and the state's 60 craft brewers.

Berceau and another Madison Democrat, Senate President Fred Risser, want to raise the $2-a-barrel tax on beer to $10. Although it would raise an estimated $39 million a year to fight alcohol abuse, the other 130 legislators and Gov. Jim Doyle have said they don't support it.

Still, leaders of statewide groups held a news conference in the Capitol on Monday, saying they don't want the beer tax raised as part of any secret deal that helps solve the three-year budget deficit estimated at $6.65 billion.

When legislators and Doyle finally agree on a plan to rebalance the state budget, "don't look at beer," said Rob Swearingen, president of the Tavern League of Wisconsin. "Beer is not going to solve this."

Carl Nolen of Middleton-based Capital Brewery predicted that the tax increase would raise the cost of a six-pack of beer by 50 cents, once wholesalers and retailers passed the tax and other costs on to consumers.

The state's 60 craft brewers have been hit with higher costs for grain and hops and could not absorb any increase in the beer tax, Nolen added. Or, he said, a tax increase could force him to lay off some of Capital Brewery's 14 workers.

Berceau has a PowerPoint presentation on her official state Internet site laying out why a tax increase is justified, however.

Steven Walters of the Journal Sentinel