Welcome to the Straightbourbon.com Forums.
Page 1 of 2 12 LastLast
Results 1 to 10 of 12
  1. #1

    Possible tax change could raise bourbon prices


  2. #2
    Connoisseur
    Join Date
    Feb 2012
    Location
    Mesquite, TX
    Posts
    619

    Re: Possible tax change could raise bourbon prices

    With all the federal backing that the industry has, I predict one of two scenarios:

    1 the bill simply dies.
    2 amendments are made to exclude industries that require year so to make their product.

    I don't see this passing.

  3. #3
    Enthusiast
    Join Date
    Nov 2011
    Location
    Atlanta
    Posts
    382

    Re: Possible tax change could raise bourbon prices

    This, is striking too close to home and below the belt.

    I doubt this will ever include the whiskey industry just because of the aging issue, but if it ever gets traction it will cause a lot of people, including moi, to become more active....writing Congressmen and Senators, etc.

    I'm sure most of them enjoy a bourbon every now and then. After all, bourbon is as American as apple pie, 4th of July, etc.
    "Civilization begins with distillation."

    William Faulkner

  4. #4
    Enthusiast
    Join Date
    Apr 2011
    Location
    Chicagoland
    Posts
    444

    Re: Possible tax change could raise bourbon prices

    And my new takeaway for the day is that there's an actual Congressional Bourbon Caucus that will be celebrating its third birthday in a few months!
    "Delicious... bourbon. Brownest of the brown liquors... so tempting. What's that? You want me to drink you?" -Lionel Hutz

  5. #5
    Connoisseur
    Join Date
    Dec 2011
    Location
    The Garden State
    Posts
    542

    Re: Possible tax change could raise bourbon prices

    Quote Originally Posted by wmpevans View Post

    I'm sure most of them enjoy a bourbon every now and then. After all, bourbon is as American as apple pie, 4th of July, etc.
    Actually, I would wager the vast majority are "Single Malt" people... Just out of the sheer pretentious nature of it... And of course the price... They have to show they only buy "the best "

  6. #6
    Virtuoso
    Join Date
    Mar 2011
    Location
    SE Minn
    Posts
    1,055

    Re: Possible tax change could raise bourbon prices

    At the end it mentioned that Beam is sitting out of the fight, since they do not use this type of accounting.

    So did have they done the math and figured something out that the others do not know. Or, if it seems to be dis-advantagous, then why are they using it?

    Any ideas?

    B
    "Life is life and fun is fun, but it's all so quiet when the goldfish die."

  7. #7
    Virtuoso
    Join Date
    Oct 2006
    Location
    The Old Original SW
    Posts
    1,001

    Re: Possible tax change could raise bourbon prices

    Without going into an all-out rant here in the wrong subject thread...to sum it up, Americans are learning the hard, hard way that elections have dire & long-term consequences. The current administration just continues to double and triple-down on making sure it squeezes as much tax out of everyone (the minority who pays taxes anyhow) using every trick known in heaven, hell & earth - and creating new ones daily - in order to extend it's tentacles to achieve the ultimate goal....total tyrannical centralized government control.

    Enough said...for here and for now.

    "Sic Semper Tyrannis"


  8. #8
    Connoisseur
    Join Date
    Feb 2012
    Location
    Mesquite, TX
    Posts
    619

    Re: Possible tax change could raise bourbon prices

    Quote Originally Posted by Old Lamplighter View Post
    Without going into an all-out rant here in the wrong subject thread...to sum it up, Americans are learning the hard, hard way that elections have dire & long-term consequences. The current administration just continues to double and triple-down on making sure it squeezes as much tax out of everyone (the minority who pays taxes anyhow) using every trick known in heaven, hell & earth - and creating new ones daily - in order to extend it's tentacles to achieve the ultimate goal....total tyrannical centralized government control.

    Enough said...for here and for now.

    "Sic Semper Tyrannis"

    I actually wonder if we looked back on the past 50 years, if crazy, crack-ridden, bills/laws were created and passed on election years. It would make sense. Politicians trying to position themselves and/or their high paying lobbyists so they get the votes they need.

    Heck, look at what Chris Dodd said. He practically blew the lid of corruption.

    Anyways....back to your regularly scheduled bourbon...

  9. #9
    Advanced Taster
    Join Date
    Jan 2010
    Location
    Virginia
    Posts
    173

    Re: Possible tax change could raise bourbon prices

    Quote Originally Posted by BFerguson View Post
    At the end it mentioned that Beam is sitting out of the fight, since they do not use this type of accounting.

    So did have they done the math and figured something out that the others do not know. Or, if it seems to be dis-advantagous, then why are they using it?

    Any ideas?

    B

    This proposal isn't new and all it relates to is the method of accounting for inventory that companies use for tax purposes. What is proposed is the elimination of the LIFO (Last In First Out) method of accounting for inventory. When this method is used, it is assumed that the cost of the last item of inventory purchased is the cost of what was sold, regardless of the fact that this probably wasn't the case. What this does is it allocates more costs to the inventory that is sold, essentially reducing profits, and thereby reducing the tax bill. IIRC the use of LIFO took off during the early 1980s when inflation rates were much higher in the US.

    Eliminating LIFO would require taxpayers to use FIFO (First In First Out) whereby the older (lower) costs of inventory are assigned to what is sold, increasing profit and increasing taxes. The boost to tax revenue will be temporary as the old prices in inventory are used up, and eventually, taxes will even out once that happens.

    There has been talk of making this change for years, now. Brown-Forman isn't going to be taken over by some foreign corporation becuase of higher tax bills. And Beam apparently never made the switch because they probably didn't think it was worth it for tax purposes and probably uses FIFO which likely better reflects reality.
    Never ask a man if he is from Virginia. If he is, he'll tell you. If he isn't, you don't want to embarass him.

  10. #10
    Connoisseur
    Join Date
    Dec 2011
    Location
    The Garden State
    Posts
    542

    Re: Possible tax change could raise bourbon prices

    Quote Originally Posted by BFerguson View Post
    At the end it mentioned that Beam is sitting out of the fight, since they do not use this type of accounting.

    So did have they done the math and figured something out that the others do not know. Or, if it seems to be dis-advantagous, then why are they using it?

    Any ideas?

    B
    The number of loopholes available to Beam because od rheir sheer size is greater than some others. Many corporations have a corporate holding in low tax locations like Ireland. The US corp pays a huge "License Fee" of some type to the Offshore corporation and thus doesn't have to pay the US tax rate on those profits.

    Thanks to strategies like this, corporations like Google paid effectively 3% tax in 2010, JP Morgan 3.5% and so on.

    So, which loophole is important to which corporation varies, but thanks to so many of rhem being there, you can be certain that they are all paying an effective rate far less than it appears they are paying on the surface.

 

 

Similar Threads

  1. Bourbon prices are up... what have you seen...
    By spun_cookie in forum General Bourbon Discussion
    Replies: 13
    Last Post: 10-12-2009, 19:07
  2. Whoa! Prices Rising on Bourbon!!!
    By JamesW in forum General Bourbon Discussion
    Replies: 8
    Last Post: 06-19-2008, 21:47
  3. Effect of corn prices on bourbon
    By CorvallisCracker in forum General Bourbon Discussion
    Replies: 2
    Last Post: 04-21-2008, 17:22
  4. Bourbon prices
    By ratcheer in forum General Bourbon Discussion
    Replies: 36
    Last Post: 11-12-2006, 17:50
  5. Bourbon prices
    By jbutler in forum General Bourbon Discussion
    Replies: 10
    Last Post: 05-16-2002, 19:06

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Back to top