MADISON, Wis.—Brewers large and small joined together Monday to object to a proposed quintupling of Wisconsin's beer tax, the first increase in 40 years.

MillerCoors joined with smaller craft brewers, the Wisconsin Grocers Association, the Tavern League and others to argue that raising the tax in a recession was a bad move that would hurt the industry.

"You don't raise a tax just because it hasn't been raised in a while," said Rob Swearingen, president of the Tavern League.

Opposition from the league, which represents 5,000 bars and liquor stores, has helped to keep Wisconsin's beer tax at the third-lowest nationwide. But it could be harder to defeat a tax increase this year as lawmakers are looking at every alternative to help plug a projected $6.6 billion budget shortfall.

Even faced with that large of a problem, Democratic Gov. Jim Doyle remains opposed to the tax increase being pushed by a Democratic state representative and a coalition of more than 50 law enforcement agencies, hospitals and others.

Brandon Scholz, president of the Wisconsin Grocers Association, said his group is concerned the proposal could make its way into the state budget even without the governor's support. The Legislature's Joint Finance Committee is now working on a plan to balance the budget.

The tax would go up from 0.6 cents to 3 cents per bottle under the bill. Those opposed said any increase would be difficult to handle.

In the past five years, brewers' costs have gone up 30 percent, said Carl Nolen, president of both Capital Brewery in Middleton and the Wisconsin Brewers Guild. Breweries can't afford to absorb the cost of a tax increase, he said.

Retailers are operating on a thin profit margin and can't afford to eat the tax either, meaning it will get passed along to consumers, who then will buy less, Scholz said.

The bill's co-sponsor rejected the concerns. The public will support a beer tax increase to help pay for all the costs associated with alcohol abuse, said state Rep. Terese Berceau, D-Madison.

The $58 million raised would be used to provide grants to local governments to reduce alcohol-related crimes by hiring more police and to pay for drug and alcohol abuse prevention and treatment.

Only Missouri and Wyoming have a lower beer tax than Wisconsin. Long a beer-friendly state, Wisconsin has raised its tax only three times since Prohibition ended.

Miller, the state's last large brewer, announced last year it was moving its headquarters from Milwaukee to Chicago to merge with Coors. But Wisconsin still has 66 craft breweries, ranking it 10th nationwide in breweries per person, according to the national Brewers Association.

By Scott Bauer Associated Press Writer