[Congressional Record Volume 141, Number 156 (Tuesday, October 10, 1995)]
[Senate]
[Page S14898]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BREAUX:
  S. 1300. A bill to amend the Internal Revenue Code of 1986 to 
simplify the method of payment of taxes on distilled spirits; to the 
Committee on Finance.


      the distilled spirits tax payment simplification act of 1995

 Mr. BREAUX. Mr. President, I introduce the Distilled Spirits 
Tax Payment Simplification Act of 1995, a bill more readily known as 
all-in-bond. The bill would streamline the way in which the Government 
collects the Federal excise tax on distilled spirits by extending the 
current system of collection now applicable only to imported products 
to domestic products as well.
  Today wholesalers purchase foreign bottled distilled spirits in 
bond--tax-free--paying the Federal excise tax directly after sale to a 
retailer. In contrast, when the wholesaler buys domestically bottled 
spirits--nearly 86 percent of total inventory--the price includes the 
Federal excise tax, prepaid by the distiller. This means that hundreds 
of U.S. family owned wholesale businesses increase their inventory 
carrying costs by 40 percent when buying U.S. products, which must be 
financed through borrowing.
  Under my bill, wholesalers would be allowed to purchase domestically 
bottled distilled spirits in-bond from distillers just as they are now 
permitted to purchase foreign produced spirits. Products would become 
subject to tax on removal from the wholesale premises. Additionally, 
the Federal tax collection process would be simplified by providing 
that only one Federal agency collect the tax.
  All-in-bond is an equitable and sound way in which to remove the 
burden of prepayment of the Federal excise tax on domestically bottled 
spirits while streamlining our tax collection system. I hope my 
colleagues will join me in cosponsoring this important 
legislation.
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