Saturday, May 11, 2024

             CARBON TAXATION : THE CIDER HOUSE RULES

IS HALF A MILLION DOLLARS  A TON         A HIGH ENOUGH  CARBON TAX ?


WHILE CLIMATE DENIERS HAVE SAID SOME MEMORABLY DUMB THINGS ABOUT THE MEDIEVAL WINE TRADE, thE BIDEN ADMINISTRATION  has, in its infinite wisdom  , ALLOWED SOME OF ITS MORE SADISTIC MINIONS TO IMPOSE A  SERIOUSLY PUNITIVE Tax OF $510,000 PER TONNE OF carbon contained IN CO2 in some  alcoholic beverages.

"Under the federal code, alcoholic cider is taxed as either hard cider, still wine, or sparkling wine, and the implications of which category applies are not insignificant. Hard cider is taxed at a modest $0.226 per gallon, while sparkling wine is taxed at a whopping $3.40 per gallon—a staggering 1,400 percent increase. For every 100 gallons of cider produced, Uncle Sam either takes $22 in taxes or $340 in taxes. 

What determines how cider is categorized and taxed? A ridiculous three-part formula ...To avoid the  $3.40 per gallon tax rate. cider must contain under  8.5 percent alcohol by volume (ABV), and have  less than 0.64 grams of carbon dioxide (CO2) per 100mL. "

This translates into a roughly one dollar a liter  tax NOT JUST ON  HARD cider containing > 6.4 grams per liter of CO2, BUT EVERYTHING FROM CAVA, PROSECCO , AND CRACKLING PORTUGUESE  ROSE' TO CHANDON'S NAPA VALLEY  BRUT  AND  VINTAGE  FRENCH CHAMPAGNE.

 as  CO2 is ~ 27% CARBON BY WEIGHT, THATS ABOUT  $510,000 per tonne of dissolved CO2 carbon  in beverages subject to taxation as sparkling wine.