Foreign-owned liquor companies must have missed the memo about Americans struggling to pay for gas and groceries. Rising inflation is tightening family budgets — and gas prices across the country are at a record-high. In some communities inside my old district, gas prices are above the national average of $5. Still, the liquor industry continues to press lawmakers in Washington, D.C. and in states for additional tax carveouts that will ultimately pad their company profits at the expense of U.S. consumers and U.S. jobs.
The liquor industry already enjoys close to $1 billion every year in federal tax loopholes. Two obscure federal tax provisions, known inside the Beltway as “rum cover over” and 5010, provide significant financial benefit to big liquor, all funded by taxpayers. These companies are more than happy to charge high prices in the U.S. but then siphon off their profits, even as consumers fight through the pain of inflation. Where do these self-serving profits go? Investments in other countries like Mexico, France, Ireland, and others.
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