An Indiana legislator introduced a bill Tuesday that could take the edge off the cost of booze.
House Republican Todd Young, a representative from Indiana, introduced the Distillery Innovation and Excise Tax Reform Act — a bi-partisan bill which seeks to significantly cut excise taxes on distilled spirits like whiskey, rum, gin and vodka. (Video via C-SPAN)
Cutting taxes on liquors sounds like Young is doing drinking Americans a favor and lightening our bar tabs, but the legislation is a bit more business-oriented.
Spirits have higher taxes on them than beer and wine. According to this chart from the Distilled Spirits Council, more than half of what you pay for a bottle of 80 proof liquor goes to taxes and fees. Trade groups like the Distilled Spirits Council believe that has lead to distilleries cutting jobs.
Young, the co-sponsors of the legislation and trade groups representing distillers all want to take some of the financial burden off companies who make distilled spirits. American Craft Spirits Association President Tom Mooney said in a statement, "This bill will help create jobs across America for the rapidly growing distilling industry."
But alcohol taxes are a big source of revenue for the U.S. According to statistics from the U.S. Congressional Budget Office, alcohol taxes brought in nearly $10 billion last year.
This video includes images from Getty Images.