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Buried in the new Obama Tax Proposal


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Look out flavored spirits........

C/P from huffpost article, they want to repeal the special lowered tax for flavored drinks. Personally, that would be great, maybe help bring up the price on those cheap flavored whiskys starting to pop up..

1. A Tax on Flavored Vodka

President Obama wants to tax your Stoli Razberi.

Distilled spirits currently get a tax break if they include flavors, but the president's budget proposal does away with that. Spirits are taxed at $13.50 per proof-gallon (a gallon of 100-proof liquor), but if distillers add flavorings, they can roll back some of that tax: Up to 2.5 percent of the alcohol in those flavoring mixtures is exempt from the spirits tax.

It doesn't sound like much, but the Treasury claims this tax break gives an unfair advantage to flavored liquors, particularly foreign producers whose flavor quotients aren't restricted, as they are for U.S. producers. Heavily-flavored, foreign-made spirits can be sold cheaper, and consumers might be more likely to buy them than they otherwise would, Treasury argues.

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