Milford chronicle., 1963-12-13

ees are major market for the
products and services of other
industries throughout the nation :
spending a total of $7.3 billion
In 1862. And as source of gov
ernment revenue, the industry
contributed $4.8 billion in taxes
on its products to Federal, state
and local treasures in 1862.
Agriculture has an important
stake In the industry. American
farmers provide the basic raw
materials for the distilling In
duStry, for our nation's brewers
and for the wine producers. Last
year alone the industry purchas-
ed more than $222.3 million dol
lars worth of farm products.
Take corn, for instance, one
of Americas major farm pro-
ducts. The midwest corn belt,
upon which SO much of the health
of our agricultural economy de-
pendS, finds an important out
let In the whiskey producers.
In 1862, the distilled spirits in
dustry purchased SO, ,659, ,23O
bushels of corn at an average
price of $l.O4 per bushel for a
total value Of SAL, PAS, 500. This
was approximately $ll million
more than was purchased in
1861. In addition, the brewers
and other producers bought
another 1872 bushels of corn at
the same price, bringing the
industry's total corn purchases
to we'll over $6l.2 million.
Other major farm purchases
were barley, 1884 million;
grapes, $78.5 million; rice, $l5.7
million; hops, $l4 million.
To haul its finished products
to the nationwide markets, the
alcoholic beverage industry paid
another $76.7 million In 1862
to the rail and trucking industry.
The economic benefits of this
industry are felt throughout the
land, and notably In the nation's
capital, where 1t is the number
one commodity revenue producer
for the Federal treasury.
More than one half million
dollars every hour, every day
OF the week -- that's the amount
Of public revenues contributed
to Federal, state and local
treasures by today's alcoholic
beverage industry.
Since Repeal, the industry has
contributed more than $50 bill
lion In Federal taxes alone =
more than enough to have paid
all of the Federal governments
expenses for l3O years Q789-
1879. 1t has also paid more
than $2l.7 billion to state and
local governments, most Of
which IS allocated to such vital
services as public education,
public welfare and other specific
public uses.
Federal taxes on distilled
spirits 80 currently $l0.5O al
gallon are five times the
cost Of production, while the
combined Federal, state and
local taxes and fees consume
an average Of So cents out of
every dollar spent by the nation's
for liquor. The Fed
sral excise revenue from alco-
nolic beverages is almost one
and a half times the total col
lected from gasoline, and more
than double the combined yield
on communication and tranSpor-
tation.
Federal taxes on distilled
spirits have increased 854 per
cent since Repeal, to a record
high Of $l0.50 per gallon, of
which $l.50 IS a temporary rate
adopted during the Korean con-
flict. The war "emergency" has
long since passed, but the
Temporary emergency" portion
Of the tax rate remains = des-
pite the fact that levies on III
other commodities and services
imposed at the same time and
under the same conditions, have
either been reduced or eliminat-
ed.
In recent years, various states
have been turning more and
more to distilled spirits as al
source Of higher revenues - the
national average of state taxes
has trebled since Repeal, moving
up again In 1861 from a $l.87
per gallon average to $l.95 last
year.
Almost invariably, when state
liquor taxes or control state
markups have been raised In re-
cent years, these increases have
resulted In decreasing liquor
sales ~ or at least limiting
them. And so, while many states
may gain slightly In revenues
collected from distilled spirits,