this post was submitted on 04 Jul 2024
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States can't tax rum?
No, it's not that PR has taxes on their rum in PR, it's that all rum sold in the US that originated from PR has a tax that gets sent to PR. It comes to hundreds of millions of dollars per year.
https://www.ecfr.gov/current/title-27/chapter-I/subchapter-A/part-26
Of course I am having trouble really figuring out how much of a loss that would be to them. It's obviously very complicated to determine how much monies would end up coming in from Federal programs for states vs programs created specifically for them.
Can't they just tax the production and pass that to the consumers?
Then all the distilleries move to the USVI.
Would USVI even have the space for that? They're not exactly a territorial giant.
Probably. They poached Captain Morgan from PR, and they already have Cruzan.
https://www.npr.org/2024/03/15/1197958469/rum-wars-puerto-rico-virgin-islands-captain-morgan