The Real Crisis: It’s the Tax on Booze

The Real Crisis: It’s the Tax on Booze

Performed Bale Harrison & The Texas Field Hands

It’s the Tax on Booze – Music and Lyrics by Alan Nafzger

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(Verse 1)
It ain’t the inflation or the immigration fight,
Ain’t the terrorists or them wages that ain’t right.
We got bigger problems, I’ll give you the news,
It’s the price on beer, rum, and whiskey, too.

You hear ‘bout healthcare, and the crumblin’ schools,
And folks fightin’ over who’s writin’ the rules.
But all those issues, they won’t bring us down,
It’s the tax on my bourbon that’s wreckin’ this town.

(Chorus)
These political problems ain’t ruin’ America, no sir,
It’s the 400% tax, that’s the real spur.
A bottle of rum oughta cost me less than two,
But I need a loan for a bottle of booze.
I need a fifth, but a dollar two ninety-eight?
The real crisis ain’t the world, it’s the tax I hate!

(Verse 2)
It ain’t the bureaucracy or what teachers make,
It’s the cost of vodka that makes my heart ache.
What’s hurtin’ my soul ain’t the trade wars or crime,
It’s payin’ out the nose for my sweetie’s pink wine.

Canadian whiskey’s priced like it’s gold,
Bourbon’s so high, I’m feelin’ robbed and cold.
And if I could afford to read the news tonight,
I’d grab me a bottle, but the price ain’t right!

(Chorus)
These domestic problems ain’t ruin’ America, no sir,
It’s the 400% tax, that’s the real spur.
A bottle of rum oughta cost me less than two,
But I need a loan for a bottle of brew.
I need a fifth, but a dollar two ninety-eight?
The real crisis ain’t the world, it’s the tax I hate!

(Bridge)
It ain’t the cybersecurity or voting rights,
Ain’t the cops, the crime, or the news tonight.
What’s draggin’ us down ain’t foreign attacks,
It’s the tax on booze breakin’ our backs.

Never let a crisis go to waste, they say,
But the price on my vodka ruins my day.
Uncle Sam’s got his hands in my wineglass, too,
Now that’s the crisis I just can’t get through!

(Chorus)
These foreign problems ain’t ruin’ America, no sir,
It’s the 400% tax, that’s the real spur.
A bottle of rum oughta cost me less than two,
But I need a loan for a bottle of brew.
I need a fifth, but a dollar two ninety-eight?
The real crisis ain’t the world, it’s the tax I hate!

(Outro)
Forget all the troubles that the papers scream,
The real crisis is the price of my drinkin’ thing.
A dollar two ninety-eight, that’s what a fifth should be,
But thanks to the tax man, it’s out of reach for me!

(Verse 3)
I recently visited ol’ Jack Daniel’s place,
Where the whiskey runs wild, but so does the chase.
They’re crankin’ out 70 gallons a minute,
140 proof, yeah, there’s fire in it.

But here’s the kicker, ain’t no one believin’,
Uncle Sam takes $1 point 4 million every evening.
That’s 24 hours of taxman’s dream,
Uncle Sam better thank Jack for that bailout scheme!

(Chorus)
These social problems ain’t ruin’ America, no sir,
It’s the 400% tax, that’s the real spur.
A bottle of rum oughta cost me less than two,
But I need a loan for a bottle of brew.
I need a fifth, but a dollar two ninety-eight?
The real crisis ain’t the world, it’s the tax I hate!

———

Now think about it…
If we read the newspapers anymore,
Or someone told us what’s really in store,
We’d all be drinkin’ a whole lot more,
Tryin’ to drown the truth we can’t ignore.
‘Cause with all the headlines and the endless debates,
That fifth of whiskey’s not lookin’ not likely to happen.
Now think; Cheep booze, might delay any uprising,
And Politicians if they were REALLY for the common man, they’d let him drink cheap booze!

The Federal Tax on Booze

The federal excise tax on alcohol is one of the oldest forms of taxation in the United States, dating back to the late 18th century. Established initially to generate revenue for the fledgling government, this tax has played a pivotal role in shaping the alcohol industry and consumption habits. Over the years, the tax has evolved, influencing both public policy and the economy in significant ways.

Historical Background: Tax on Booze

The federal excise tax on alcohol was first introduced in 1791 under Treasury Secretary Alexander Hamilton. Known as the “Whiskey Tax,” it was an attempt to reduce the national debt incurred from the Revolutionary War. However, this tax was met with intense resistance, most notably culminating in the Whiskey Rebellion of 1794, where farmers in Pennsylvania rose up in protest. While the rebellion was quashed, it showcased the deep-seated opposition to federal taxation, especially on such a widely consumed commodity.

During Prohibition (1920-1933), the federal excise tax on alcohol was, of course, non-existent as the sale of alcohol was illegal. However, the repeal of Prohibition in 1933 through the 21st Amendment brought the return of alcohol taxes, which quickly became a significant revenue stream for the federal government. In the modern era, excise taxes on alcohol have fluctuated depending on political and economic pressures.

Current Structure: Tax on Booze

Today, the federal excise tax on alcohol is applied to three main categories: beer, wine, and distilled spirits. The rates differ based on both the type of alcohol and its volume:

• Beer: The federal excise tax on beer is tiered. For large producers, the rate is $3.50 per barrel for the first 60,000 barrels and $16 per barrel for any barrels produced after that. For smaller brewers (producing fewer than 2 million barrels annually), the rate is $3.50 for the first 60,000 barrels and $18 for every barrel beyond that.
• Wine: The tax on wine varies depending on alcohol content and carbonation. For still wines, the excise tax ranges from $1.07 per gallon for wines with up to 14% alcohol by volume to $3.40 per gallon for sparkling wines. Higher rates apply for wines with higher alcohol content or carbonation levels.
• Distilled Spirits: The tax on distilled spirits is the highest, standing at $13.50 per proof gallon (a proof gallon is one gallon of liquid at 50% alcohol by volume).

Economic and Social Impacts

The federal excise tax on alcohol serves multiple purposes beyond merely generating revenue. On the economic side, the tax provides the government with billions of dollars annually. In 2019, for instance, alcohol excise taxes generated approximately $10 billion in revenue. This money is used to fund various public services, from infrastructure projects to healthcare initiatives.

From a social perspective, alcohol taxes are often viewed as a tool for promoting public health. Higher taxes on alcohol can act as a deterrent to excessive consumption, particularly for high-proof spirits, which have a higher tax rate. This rationale is based on the idea that higher prices lead to reduced consumption, which in turn may lower alcohol-related harm, including drunk driving incidents and alcohol-related health issues.

Criticisms and Debates

Despite its historical legacy and economic importance, the federal excise tax on alcohol is not without its critics. Industry representatives, especially from smaller breweries and distilleries, often argue that these taxes disproportionately affect their businesses. Larger producers can absorb the costs more easily, while smaller companies may struggle to remain competitive. There’s also debate over whether such taxes unfairly burden consumers, particularly those with lower incomes.

Some public health advocates argue that alcohol taxes should be raised even higher, contending that the social costs of excessive alcohol consumption—such as healthcare expenses, lost productivity, and criminal justice costs—outweigh the current revenue generated from these taxes.

In conclusion, the federal excise tax on alcohol is a complex and multifaceted issue. While it remains a vital source of government revenue, it also sparks ongoing debates about fairness, public health, and the role of taxation in shaping societal behavior.