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California plans 1,550% tax hike on some wines
Orange County Register ^ | 2-28-11 | Jan Norman

Posted on 02/28/2011 6:38:18 AM PST by freedombiz

The Board of Equalization has proposed taxing certain wines as distilled spirits, which would increase the excise tax on the wine from 20 cents a gallon to$3.30 a gallon, a 1,550% jump. The higher tax is on wines to which distilled alcohol has been added, such as wine specialties, flavored table wine, wine cocktails, wine coolers or blends of wine from different fruits. It is set to go into effect Jan. 1, 2012. The issue exemplifies the slippery slope that government starts down with a well-intentioned tax increase with unexpected consequences.

(Excerpt) Read more at jan.ocregister.com ...


TOPICS: Business/Economy
KEYWORDS: california; oenology; tax; wine; winemaking
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The state doesn't pretend the tax will raise any money for bankrupt California. It's about "fairness," not to taxpayers or wine drinkers but to beer producers.
1 posted on 02/28/2011 6:38:22 AM PST by freedombiz
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To: freedombiz
It's about "fairness," not to taxpayers or wine drinkers but to beer producers.

There is the little thing about equal protection, or in this case equal exploitation, under the law.

2 posted on 02/28/2011 6:40:33 AM PST by E. Pluribus Unum ("If they bring a knife to the fight, we bring a gun." -- Barry Soetoro, June 11, 2008)
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To: freedombiz
Raise taxes, increase price, reduce demand, reduce sales, reduce tax revenues.

Works every time. Brilliant!

3 posted on 02/28/2011 6:41:13 AM PST by FatherofFive (Islam is evil and must be eradicated)
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To: freedombiz
Instead of falling off into the Ocean, California Legislature decides to implode the state from within.
4 posted on 02/28/2011 6:44:21 AM PST by King_Corey (www.kingcorey.com)
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To: freedombiz

“that government starts down with a well-intentioned tax increase with unexpected consequences”

well-intentioned ? For whom, for the ‘public servants’ with $300,000 pensions?


5 posted on 02/28/2011 6:44:37 AM PST by mewykwistmas
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To: freedombiz
The Board of Equalization

...if EVER there was an Orwellian term......

6 posted on 02/28/2011 6:45:12 AM PST by massmike (DADT repeal: the Boy Scouts now have tougher membership requirements than the Army!)
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To: freedombiz

WTH is “The Board of Equalization?”

Seriously, that is so Orwellian that it sounds to the left of Stalin.


7 posted on 02/28/2011 6:46:06 AM PST by bill1952 (Choice is an illusion created between those with power - and those without)
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To: freedombiz

“.....wines to which distilled alcohol has been added, such as wine specialties, flavored table wine, wine cocktails, wine coolers or blends of wine from different fruits”

Aren’t these the sort of wines commonly purchased by homeless vagrants? It seems like they’re out to tax bums, who are thought not to vote or follow politics.


8 posted on 02/28/2011 6:50:53 AM PST by proxy_user
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To: freedombiz
The excise tax is paid by manufacturers, wine growers and importers and if they fail to pay it, by retailers who typically pass it on to consumers, several retailers told the Register.

You've got to be kidding. All business taxes are ultimately paid by the consumer. Libs love to think their followers are so stupid (which, for the most part, they are) that they will accept a tax on all those bad business people and the libs will cheer them on...which they do. Unfortunately, those of us with more than one neuron firing recognize that such taxes must come from business income, which ultimately must come from the consumer. Idiots...

9 posted on 02/28/2011 6:51:13 AM PST by econjack (Some people are as dumb as soup.)
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To: freedombiz

Put the same tax on crack cocaine, and the National Debt could be gone in 5 years......


10 posted on 02/28/2011 6:56:07 AM PST by traditional1 ("Don't gotsta worry 'bout no mo'gage, don't gotsta worry 'bout no gas; Obama gonna take care o' me!)
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To: freedombiz

That is a product killer tax. Consumers will buy from other wine producing regions.

The California death spiral has accelerated.


11 posted on 02/28/2011 6:59:21 AM PST by kidd
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To: freedombiz

Looks like the wine industry will be the next industry that starts looking to leave California.


12 posted on 02/28/2011 6:59:43 AM PST by Texas resident (Hunkered Down)
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To: bill1952
WTH is “The Board of Equalization?” Seriously, that is so Orwellian that it sounds to the left of Stalin.

It's a clever scam, too. Taxes can always be initiated for some necessity or good cause. Then the Board of Equalization can later say that those taxes unfairly target a particular subgroup, so let's raise taxes on other groups in the interest of fairness. There's no ultimate limit here below 100% of all revenues eventually going to the State.

Sliding down the Laffer curve. Wheeeee!

13 posted on 02/28/2011 7:00:35 AM PST by Pearls Before Swine (tt)
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To: freedombiz

You know that in the back of every tax/spend politicians mind out there is a desire to raise all taxation to the level of cigarettes.

Just think of the revenue!
It’s government tax percentage beats alcohol and gasoline and everything else.

The Feds take $1.01 right off the top and most of the states have a field day with the rest.


14 posted on 02/28/2011 7:00:51 AM PST by libertarian27 (Ingsoc: Department of Life, Department of Liberty, Department of Happiness)
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To: traditional1

Put the same tax on crack cocaine, and the National Debt could be gone in 5 years......

And the California legislature will be in rehab.


15 posted on 02/28/2011 7:05:34 AM PST by Bitsy ( i)
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To: freedombiz

The Board of Equalization??

I thought something like that was only in Animal Farm or 1984 or something like that.


16 posted on 02/28/2011 7:06:17 AM PST by MichaelCorleone (Sarah Palin is America's Margaret Thatcher)
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To: Texas resident
Looks like the wine industry will be the next industry that starts looking to leave California.

Would it be legal, say, for the "Headquarters", owners, et al. to "move" the business to a free-enterprise state such as NV, and still be able to harvest the vine from their vinyards in CA?

I've heard of a CA division that chases people down that claim other states income (or non-income) tax rate, but have business interests in CA.

17 posted on 02/28/2011 7:10:02 AM PST by DCBryan1 (FORGET the lawyers...first kill the "journalists". (Die Ritter der Kokosnuss))
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To: massmike
The Board of Equalization

Sounds like something out of the 1930's New Deal era.

18 posted on 02/28/2011 7:10:39 AM PST by PogySailor (The ruling class will not go down easily. And neither will their paid hacks.)
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To: Texas resident
Looks like the wine industry will be the next industry that starts looking to leave California.

Yeah. Because TX, AZ other states outside CA are prime for growing wine making grapes. Now there is one premium domestic wine that does not have any grapes in it the growers could make in arid states.


19 posted on 02/28/2011 7:11:57 AM PST by Lazlo in PA (Now living in a newly minted Red State.)
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To: freedombiz
Nancy is not amused!


20 posted on 02/28/2011 7:12:53 AM PST by COBOL2Java (Obama is the least qualified guy in whatever room he walks into.)
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