Economic Contributions of the Distilled Spirits Industry
The Industry’s Role
The U.S. beverage alcohol industry is a major contributor to the economy, responsible for over $400 billion in total U.S. economic activity in 2010, generating nearly $90 billion in wages and over 3.9 million jobs for U.S. workers.
In 2010, distilled spirits accounted for over $120 billion in total economic activity, or 30% of total economic activity from all beverage alcohol.
Contributing to State Treasuries
The beverage alcohol industry contributed over $21 billion directly to state and local revenues during 2010. Of that amount, distilled spirits accounted for over $8.8 billion or 41% of this direct revenue.
In 2010, beverage alcohol's total contribution to state and local revenues was over $41 billion. Of that amount, $20.1 billion came from indirect revenues such as corporate, personal income, property and other taxes generated by the beverage alcohol industry.
Total revenues from distilled spirits (direct and indirect) were $15.5 billion in 2010, or 37% of total beverage alcohol revenue.
A Heavy Tax Burden
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 federal excise tax burden per proof gallon for distilled spirits 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 $7.86, or 54%, of the average $14.43 price for a typical 750ml bottle of 80 proof distilled spirits in the United States in 2011.
Recent Distilled Spirits Industry Review Presentations