Money, Money, Money
This 4th of July, Americans will spend billions of dollars on food and entertainment. What’s interesting to look at is how these ventures will be taxed, alcohol in particular.
John S. Kiernan, with a panel of experts, put together an infographic full of interesting facts. Some of those revolving around alcohol.
Alcohol Excise Taxes and the 4th of July
Alcohol is subject to an excise tax which is an indirect tax. An indirect tax is paid by the producer and passed onto the consumer via the price of the product.
In Washington, wine vendors pay an excise tax of $0.87 per gallon as well as a federal excise tax of $1.07 – $3.40 per gallon. Beer vendors pay a Washington state excise tax of $0.26 per gallon and a federal excise tax of about $0.58 per gallon (or $18.00 per 31-gallon barrel).
We’ll leave it up to you to imagine how much the federal government and Washington state will collect on the 4th of July.
Oh, and have a good 4th of July! Stay Safe!
Links
Learn more from Kiernan’s infographic.
More information on Washington’s excise tax as well as the federal government.
Additionally, here is a more precise definition of an excise tax.
Lastly, learn more about our services here!
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