article By Axios WASHINGTON — In a way, the red wine industry’s response to the price gouging scandal has made sense: Consumers should be able to buy what they want.
But the industry’s argument has been that the cost of wine is too high and it’s the government’s fault for not doing more to lower prices.
But with a big win this year from President Trump, it’s a different story.
The president’s promise to increase the excise tax on wine has been the centerpiece of the industry, but the tax has been an elusive target in the Senate.
Trump’s win over Senate Majority Leader Mitch McConnell and the House Ways and Means Committee will make it easier to raise the tax.
If he signs the bill, it would go into effect in January 2018.
A win for the wine industry also will make the case that wine prices are too high.
The White House says it wants to reduce the cost by $20 a bottle to $9, which would help to reduce prices.
The wine industry has been arguing that lowering the tax would be a boon to the industry.
The industry says it would be more profitable if the tax were eliminated entirely, rather than reduced.
“It’s a win for consumers because they can buy as much as they want,” said David Mott, the chief executive of the Wine and Spirit Wholesalers Association.
“But it’s also a win because the tax is a tax and they’re going to get paid.”
The industry’s biggest worry is the possibility of a new tax on sugar, because the White House wants to tax sugar in excess of 10 percent, an amount that has been proposed in the past.
A spokesman for the Treasury Department said the administration is reviewing the wine tax and would evaluate the impact on the industry when it makes its decision.
“We’ve been working closely with our industry partners to see what additional measures are needed to support the wine market and make it sustainable,” spokesman Scott Harnish said in a statement.
“The administration is making decisions based on a number of factors including the quality of the wine and the industry.”
The wine tax was first introduced in 2013, and the Wine Marketing Association, the industry trade group, has lobbied Congress since then to lower the tax to less than 10 percent.
The Wine Institute, a trade group that represents producers, says that if the industry was successful in getting the tax reduced to 10 percent in 2020, that would lower the price of wine by $30 per bottle.
The group’s president, Dan Rochon, said the industry wants to keep taxes low because consumers will feel more secure about buying wine.
The administration said it’s considering changes to the excise taxes that would bring it in line with the cost-of-living increases that have been enacted by the Trump administration.
The price of red wine would drop to $10 a bottle if the current excise tax rate is eliminated.
The government would also be able use its revenue to increase a food stamp program, which is a big draw for some consumers.
The Trump administration says that would help increase consumer spending on food stamps by $10 billion over the next decade.
“These measures would provide billions in tax relief to small businesses and the nation’s wine industry,” said White House press secretary Lindsay Walters.
“At the same time, the White Board’s wine tax proposal also includes a number other significant reforms that will help the wine sector continue to thrive.” “
In its proposal, the Treasury Office of Management and Budget proposed raising the tax from $4 to $8. “
At the same time, the White Board’s wine tax proposal also includes a number other significant reforms that will help the wine sector continue to thrive.”
In its proposal, the Treasury Office of Management and Budget proposed raising the tax from $4 to $8.
The agency also said it would seek to raise more revenue by raising the price on wine from $9 to $11.
The tax would also increase the federal wine excise tax from 8.2 percent to 12.2.
The Treasury also said the price change would be “temporary,” which could mean the tax rate would not go back to 10.2 or higher.
“That’s because we want to be sure the administration can deliver on the promise that it made,” Walters said.
The win for Washington’s winemakers and other wine-loving Americans is that the White Congress would have the chance to reduce some of the steep taxes already on the books.
But if the wine taxes are reduced and a new wine tax is approved, it will likely be in the form of a temporary change.
The proposal to lower wine taxes would cost $3.8 billion over 10 years.
That’s about half the amount spent to reduce taxes on soda and cigarettes.
A White House official said the tax reduction would have an effect on the price for many wine products, but did not say what would happen to wines that were not included in the new excise tax.