The Small Distillery Excise Tax Act (HR 777)

[PaulO]

I don't know if this is just hear say but, I thought $2 Chuck ($2.99 in IN) story was that a guy set up a winery with all new modern equipment and then just bought the grapes that were left at the end of the harvest. The big labels always had to grow some extra, so they never ran out.

[ILLfarmboy]

The FET is such a huge part of the cost of producing distilled beverages that a break this big provides an irresistible incentive to turn the law to a purpose for which it was not intended. I don't think this has any chance of passage for that reason.

Yes, most definitely, on both accounts.

But why would this loophole be a bad thing?

Should I want booze to have an infated price point because of the FET?

[White Dog]

I don't know if this is just hear say but, I thought $2 Chuck ($2.99 in IN) story was that a guy set up a winery with all new modern equipment and then just bought the grapes that were left at the end of the harvest. The big labels always had to grow some extra, so they never ran out.

Don't believe this urban legend.

[White Dog]

Actually, while Trader Joe's is the main (maybe now exclusive) retailer to market Charles Shaw, they don't own it. It's owned by the Bronco Wine Company which, as you noted, buys bulk wine for the label.

And Bronco Wine Company is owned by Fred Franzia, who happens to be a convicted felon.