Occupational Taxes on the Alcohol Industry Should Be Repealed
GGD-75-111
Published: Jan 16, 1976. Publicly Released: Jan 16, 1976.
Skip to Highlights
Highlights
Alcoholic beverage occupational taxes collected in fiscal year 1975 amounted to $21.5 million.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should repeal all occupational taxes in sections 5081 through 5148 of the Internal Revenue Code on retail and wholesale dealers in distilled spirits, wines, and beer; manufacturers of nonbeverage alcoholic products; brewers; manufacturers of stills; and rectifiers. | Several sections of the Code have been repealed as GAO suggested (sections 5081 thru 5084). Occupational taxes in section 5101, 5105, and 5129 were repealed by the Deficit Reduction Act of 1984 (P.L. 98-369) which was enacted on July 18, 1984. Treasury contends that the remaining sections should not be repealed. GAO is conducting a followup review to reaffirm its position. | |
| Congress should amend the Federal Alcohol Administration Act to clarify the authority of the Bureau of Alcohol, Tobacco, and Firearms to investigate possible consumer and/or unfair trade practice violations of the Act prior to a permit hearing. | While the Bureau of Alcohol agrees with the thrust of the recommendation, it does not intend to pursue remedial legislation because it is unlikely that Congress would consider it favorably and industry is now cooperating with the Bureau under its current operating procedures. |
Full Report
Office of Public Affairs
Topics
Alcohol taxesFederal regulationsInspectionTax violationsTaxesFirearmsVoluntary compliancePostal serviceAlcoholic beveragesDeficit reduction