Trade has been a hot topic on R Street's drinks team lately. Now, the Trump Administration is furthering this discussion, as they are questioning a tax benefit that wine importers have. Richard Rubin and Jennifer Maloney explain in the Wall Street Journal:
The Trump administration is challenging a tax benefit that gives the wine industry more than $50 million annually and blocking beer and spirits makers from using the same break.
The government’s fight against the alcohol industry stems from what officials describe as an error by a Customs and Border Protection office in San Francisco in 2004. Since then, wine importers have been able to offset taxes owed on imports by getting credit for their exports—even when excise taxes on those exports were never paid.
The Treasury Department attempted to end the benefit for wine companies in late 2009 but senators from wine-producing states, including current Senate Minority Leader Chuck Schumer (D., N.Y.), objected and Treasury withdrew the proposal...
Read the entire article here.