Evening star., 1933-12-25
Liquor Taxation.

The study of liquor control made Tor
John D. Rockefeller, jr., and published
In the book Toward Liquor Control"
pointed out the dangers OF q chaotic
situation resulting from Independent
taxation of the liquor business, with no
effort at coordination by the National.
State, county and municipal govern
ments. The report feared that waste
full duplication and conflicting policies
in administration may render inehlcient
and ineffective the whole tax structure" |"
In the direction of uniformity Of taxa
ton, whicl i, believed could be used
effectively in control, the report recon-
mended q single Federal gallonage tax
Of spirituous liquors, with certain other
taxes reserved exclusively to the States.
The Presidents committee which rec
commended liquor taxes to the House
Ways and Means Committee and to
the Senate Finance Committee ap-
proved a single Federal gallonage tax OF
$3.50 gallon. This figure compares with
the tax Of So suggested by the Rookie
feller study, although the comparison is
confused somewhat by other accom-
panying Rockefeller recommendations.
The proposal in relation to the single
gallonage tax by the Federal Govern
ment was that proportion Of the total
revenue so collected be returned to the
States in accordance with their produc-
ton and consumption of spirituous
liquors
The President asked for speed in
passing the liquor revenue measure.
Every day lost in enacting q revenue
measure after the 1egalization of liquor
means a loss of revenue to the National
Government, and the need for revenue
has been one of the principal arguments
for repeating the eighteenth amend
ment. This desire for expeditions
action probably played q part in decis-
ion Of the House Ways and Means Com
mittee to drop temporarily, at least, the
idea OF single Federal gallonage tax
on splrituous liquor and decide on q
tax OF % a gallon. There we're other
factors causing delay. including the
fact that q number of the States had
already imposed separate State taxes.
The single Federal gallonage tax would
require agreements between the States
and the Federal Government, and this
would take time.
But many will continue to hope for
q more orderly system Of liquor taxa
ton than that which is to be repre-
sented in the first year after repeal.
There Is already wide variation in the
amount Of taxes collected and in the
system Of liquor tax-levying found in
the States. To the Federal gallonage
tax of 50. Maryland will add its $l.1o
a gallon tax; Arizona will levy a sales
tax Of ten cents for each sixteen ounces;
Colorado will tax at the rate of ten
cents a pint: Connecticut will tax on a
basis Of gross receipts Of liquor dealers;
Delaware will tax hard liquor sold 1T
a dollar q gallon; Indiana will levy an
excise tax Of twenty-five cents . pint;
New Mexico will tax gross profits; New
York's tax is a dollar q gallon; Ken
lucky levies q manufacturers and pro-
prietors' tax of so cents a gallon on
spirituous liquor produced before Janu-
ary /, 1928, and two cents a gallon on
liquor produced thereafter; Illinois will
have q sales tax of forty cents a proof
gallon on hard liquor; Michigan has no
tax on the sale of liquor, but the State
controls profits.
In addition the States and the Ma
tional Government impose separate
license taxes, which also vary. There
are said to be instances where q dealer
will pay q license tax to the National,
State. county and municipal govern
nents. No unified system Of controlling
liquor. utilizing the tax as an effort to-
ward control and temperance, is possible
under such an arrangement. This unfit
cation, it is to be hoped, will come later,
along with other attempts to clear up
the widely criticized multiple and dupli-
eating taxation now existing in other
fields.
For the present the House Ways and
Means Committee seems to have been
guided, in addition to the desire for
speed, by the objective Of relatively
cheap whisky. 1t has been said that
Chairman Doughton wanted good, aged
whisky available at S1.50 a quart. The
distillers, it is said, can make such
whisky for about sl20 gallon. AT
the rate of s1.50 a quart whisky would
cost the consumer Sc gallon. Between
the manufacturers $l20 and the con-