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Winemakers Lobby Congress over Taxes

By Chris Kramer

California winemakers and Washington lawmakers are facing off this week over a proposed hike in alcohol tax. Congress hopes to fund the forthcoming health care reforms by increasing the so-called “sin taxes,” including taxes from the sale of alcohol and cigarettes. Proponents on both sides of the issue argue that increased taxes will lead to less alcohol consumption. The group of winemakers hope that they might be exempt. “They are worried about being taxed in a major way as part of a health care bill,” Democratic Sen. Barbara Boxer said Wednesday, adding “I don’t think we ought to raise taxes on wine.” The current federal tax on wine is roughly 21 cents per bottle, a rate was set in 1991. Congress argues that a raise in that amount is overdue for inflation...continue to full post

Full post as published by The DUI Blog on May 14, 2009 (boomark / email).