Wining about Taxes

Jennifer Rosen totals up the taxes on a bottle of wine. This summary is direct from Walter in Denver.

1. Federal import license, $500, 3 to 5 month wait.

2. Register an office for each state in which the wine is sold, $100 to $350 per state.

3. Find a distributor for each state or even each county. These distributors will add their own markup to the price of your wine. State governments will not allow you to act as your own distributor.

4. Create and print a new English language label for the wine. The label will have to meet the federal requirements for warning labels and such.

5. After shipping, wait ten days for the wine to clear customs.

In Rosen’s hypothetical case the bottle of wine that sells in its home country for $4.50 winds in U.S. stores at $15.50 per bottle.

Tax protestors often note that half of the average American’s paycheck goes to taxes. When you count the cost of regulation, government’s cost is actually much higher.

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