Sick of $14 Martinis? A Proposed Tax Bill Could Make Liquor a Whole Lot Cheaper
Fancy cocktail and speakeasy bars may be all the rage, but you’re more likely to choke on the exorbitant menu prices than the strong liquor. However, a new bill could change that. The proposed Distillery Innovation and Excise Tax Reform Act, supported by Reps. Todd Young (R-Ind.) and John Yarmuth (D-Ken.), would slash federal distilled liquor taxes by up to 80 percent. This could potentially lower the price of margaritas, martinis, and tequila shots at your local bar, not to mention bottles at the liquor store.
The federal liquor tax on distilled spirits right now is considerable, at $13.50 per proof gallon. The proposed bill would lower that amount to $2.70 per proof gallon on the first 100,000 gallons a distillery produces and $9 for each proof gallon afterward, according to Huffington Post. Unsurprisingly, the Distilled Spirits Council issued a statement in support of the bill.
“It is significant that the distillers of all sizes are united behind this important hospitality industry legislation,” said Distilled Spirits Council CEO Peter Cressy. “We thank the sponsors for recognizing the economic impact passage of this bill will have for our industry.”
The bill was only introduced to the Assembly floor this week, so there’s no telling if it will garner enough votes to pass, or what the economic consequences of lowering liquor taxes could be.