While Michigan's $800 million deficit is thirsty for dollars, one nonprofit corporation is looking to dry the public's palette by raising a tax on beer.

The Center for Michigan, a nonpartisan think-tank, has created "Eight Ideas to Structurally Change How Michigan Does the Public's Business in These Difficult Economic Times."

The plan, which has been developed for months, gives ideas to alter both spending and taxation.

Aside from an increase on the beer tax, the plan also calls for the creation of a soft drink tax.

Executive director John Bebow said the current beer tax is "reaching irrelevance." The $6.30 tax per barrel of beer hasn't changed since 1966.

It is the 29th highest beer tax in the nation.

The organization isn't hesitating to spread the idea to lawmakers.

The plan already has been presented to Rep. Andy Dillon, D-Redford Township, and Senate Majority Leader Mike Bishop, R-Rochester.

It also was presented before the Emergency Financial Advisory Panel.

Some students and bar owners said they are concerned about the potential impact of the tax.

Bebow thinks MSU students should limit their beer consumption in order to avoid feeling the tax, if adopted.

"Students can completely control (the tax)," Bebow said. "Order three pitchers (of beer) instead of seven."

Bebow said college students would prefer an increase on the beer tax rather than an increase on income tax.

Animal science sophomore Autumn Sieffert is against the tax increase.

"Beer is made out of wheat and grain," she said. "Why put a tax on food like that? Beer is in the same category as food."

Sieffert also said the tax on soft drinks is unnecessary, due to the product's corn syrup.

The organization argues the $6.30 tax in 1966 is equivalent to a $39 tax today.

By hiking the tax an extra 25 cents per bottle, the state would gain a net increase of about $500 million.

Spartan Sports Den owner Mark Fata is familiar with the idea. As a bar owner, would be one of the people most affected by the tax, which he strongly opposes.

"If they do it, drink specials as East Lansing knows them will virtually disappear," Fata said. "A lot of places will go out of business."

Fata and his brother, Chris, have owned the Spartan Sports Den Bar and Grill, 1227 E. Grand River Ave., for 11 years.

Mark Fata said the tax could potentially double the price of a beer.

He disagrees with Bebow's statement regarding college students ordering less beer to avoid the tax.

"College students are going to drink the same either way," Mark Fata said. "It's just like with cigarettes."

The Center for Michigan calls their plan "a provocative idea starter."

Greg Bird, spokesman for the Office of the State Budget, said officials have been looking at a number of ways to shorten the state's revenue shortfall.

He said the office was aware of The Center for Michigan and its beer and soft drink tax ideas.

However, Bird said the office was in the process of exploring multiple options, not only the beer tax.

Bebow wasn't quick to write off other fiscal ideas not discussed in the plan.

"The key is those are ideas, talking points we think ought to be addressed," Bebow said.

Beer taxes raise about $42.5 million for the state's general fund, according to The Center for Michigan.

Anyone can sign up for a membership by visiting its Web site at www.thecenterformichigan.net.

Although the organization's members like the idea of hiking the tax, Mark Fata hopes it will stay just that — an idea.

"It'll affect everyone who likes beer or sells beer," Mark Fata said.

"The whole thing is just crazy to me."