Affect of a VAT Tax on Bourbon?

[jvd99]

News today has the administration floating a proposed Value Added Tax which, if the U.K. serves as an example, could add a 20% VAT to the price of a bottle of bourbon.  That's a significant price increase in a climate of already steeply rising prices.  I think this type of tax could slow down the seemingly unending bourbon frenzy as people adjust to sticker shock on all of their goods.

[birdie]

I think Washington State already does something similar from a State point of view, which adds I think 20% State Tax, makes everything in Seattle very expensive. But from experience of travelling there a lot, it tends to keep stuff on the shelf longer so you have more chance of grabbing the bottle you want.

[Richnimrod]

I shall sit upon the sidelines and await some actual information, should such a tax be passed by Congress, and should it turn out to apply to the already heaviest taxed and regulated commodity available on retail shelves (with the possible exception of tobacco; but, I'm not at all sure tobacco is as heavily regulated).

[Harry in WashDC]

According this morning's Wash Post (i.e., 5 April) at page A12, "The White House on Tuesday disavowed two controversial options for their planned overhaul of the tax code, after two Trump administration officials earlier in the day said the president's team was exploring a value-added tax to raise government revenue."

 

The sub-headline says, "Value-added and carbon levies are off the table as Trump plan evolves."

 

A couple things - my 45 years'  experience with the federal gummint (I've worked in all four parts - military, judicial, legislative, and executive) tells me this was nowhere near the "let's do this" stage which means it was likely many months away from serious consideration.  OTOH, stuff does happen without warning EXCEPT when TAXES are the issue.

 

Because this involves TAXES, I'm putting this in the "Not bloody likely and certainly not without lots of public screaming by Congresspersons and Senators and lobbying groups and outside Tax nonprofits (like Grover Norquist's) of all stripes, philosophies, persuasions, and predilections."  In other words, if this comes close to becoming a serious proposal, we'll get a really long lead time to bunker.  Just listen for the indignant outrage.