[Congressional Record Volume 145, Number 25 (Thursday, February 11, 1999)]
[Extensions of Remarks]
[Page E226]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        DISTILLED SPIRITS TAX PAYMENT SIMPLIFICATION ACT OF 1999

                                 ______
                                 

                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                      Thursday, February 11, 1999

  Mr. COLLINS. Mr. Speaker, I rise today to introduce the Distilled 
Spirits Tax Payment Simplification Act of 1999, also known as ``All-in-
bond'' legislation.
  This legislation streamlines the way in which the Federal Government 
collects the Federal excise tax on distilled spirits. Specifically, the 
legislation would extend the current system of collection now 
applicable for imported products to domestic products, thereby reducing 
unnecessary cash-flow costs for U.S. wholesalers of distilled spirits, 
most of which are family or closely held businesses. In addition, the 
Federal tax collection process would be simplified by providing that 
only one Federal agency collect the tax, not two as is currently the 
case.
  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. Carrying costs are 
increased by 40 percent for U.S. goods. Freeing up working capital for 
reinvestment will generate more jobs and more tax revenues.

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