Tax on alcohol has been with us since the Revolutionary War and later it was a device used to help pay for the Civil War. Honest Abe gave us the first tax on beer in 1862 at $1 per gallon. Even Cleopatra VII imposed beer taxes on Egyptians to pay for her wars. In America’s early history 80% of the Federal budget was funded by tax on beer, wine, and whiskey. The Whiskey Rebellion of 1794 was a direct result of an alcohol tax that increased from $0.09 per gallon to $0.25 per gallon.
The Temperance movement got its start in the 1780’s and had an active presence until Prohibition which lasted from 1920 through 1933. The tenants of temperance were that alcohol destroyed the family, promoted abuse, destroyed the mind, led to alcoholism, and destroyed initiative. Basically, Alcohol was of the Devil to capture and destroy man’s soul. In the mid 1900’s, the message turned to using taxes as a means to throttle the availability of alcohol. The theory was that cheap alcohol was the genesis of abuse by the young and was the primary cause of highway tragedies. Continue reading “The Reduced Fed. Excise Tax on Beer Launched in 2018 Is Now Permanent in 2020”