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Economic Contributions of the Distilled Spirits Industry
The alcohol industry's role in the U.S. economy
- The U.S. beverage alcohol industry is a major contributor to the US economy, responsible for nearly $388 billion in total US economic activity in 2008.
- Total economic activity contributed by distilled spirits in 2008 was $115 billion, or 30 percent of total economic activity from all beverage alcohol.
- The U.S. beverage alcohol industry generated $91 billion in wages and over 3.9 million jobs for U.S. workers.
Industry's contributions to the state treasuries
- The beverage alcohol industry contributed almost $21 billion directly to state and local revenues during 2008.
Of that amount, distilled spirits accounted for over $8.3 billion or 40 percent of this direct revenue.
- In 2008, beverage alcohol's total contribution to state and local revenues was over $40 billion. Of that amount, $19.8 billion came from indirect revenues such as corporate, personal income, property and other taxes generated by the beverage alcohol industry.
- Direct and indirect revenues from distilled spirits were $14.9 billion in 2008, or 37 percent of total beverage alcohol revenue.
Heavy tax burden of the distilled spirits industry
- Distilled spirits are one of the highest taxed consumer products in the United States.
- Standardizing for alcohol content, the distilled spirits' federal excise tax burden per proof gallon is more than double that of beer and almost triple that of wine. The spirits' federal excise tax burden per proof gallon is $13.50. In comparison, the tax burden per proof gallon for beer and wine is $6.18 and $4.86, respectively.
- Federal, state and local taxes accounted for $7.77, or 55%, of the average $14.21 price for a typical 750ml bottle of 80 proof distilled spirits in the United States in 2010.
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