Taxes excise

Compositional aspects that are regulated include a label statement within 1.5% for table wine (for dessert wines, 1.0%) of the wine s alcohol content. Eor tax identity reasons, alcohol of 7—14% is required for table wines and 17—21% for dessert and appetizer wines. Eederal excise tax rates are 0.28/L for table wines, 0.41/L for wines 14—21% alcohol, and 0.83/L for those (rare) >21-24%. Coolers made with wine become taxable at 0.5% and are taxed as table wine above 7% alcohol. Sparkling wine is taxed at 0.90/L and carbonated at 0.87/L. The borderline to incur these taxes is CO2 above 3.92 g/L. 

Low level blends of ethanol and and gasoline enjoyed some popularity in the United States in the 1970s. The interest persists into the 1990s, encouraged by the exemption of low level ethanol-gasoline blends from the Federal excise tax as well as from state excise taxes in many states. 

In the first years of gasohol use some starting and driveabiUty problems were reported (19). Not all vehicles experienced these problems, however, and better fuel economy was often indicated even though the energy content of the fuel was reduced. Gasohol was exempted from the federal excise tax amounting to a 0.16/L ( 0.60/gal) subsidy. Without this subsidy, ethanol would be too expensive for use even as a fuel additive. 

In England, the Magna Carta provided a standard of measurement for the sale of ale and wine. In 1643, the English Parliament proposed the first tax on distilled spirits. In the American colonies, William Kieft, Director General of New Nethedand, imposed the first liquor tax of two guilders on each half vat of beer in 1640. Alexander Hamilton initiated an excise tax on domestic spirits in 1791. The tax was resented and ultimately repealed in 1800 by Thomas Jefferson. Except during the War of 1812, domestic spirits remained untaxed until 1862. At that time, a tax of 0.02/L was implemented, which has been increased periodically. In January 1991, the Pederal Excise Tax on distilled spirits was raised to 3.56 per titer or 13.50 per proof gallon. In addition, many states have substantially increased the state excise taxes on distilled spirits. 

Excise taxes placed on specific energy sources tend to reduce the demand for these energy sources in both the short and the long run. The federal government imposes excise taxes on almost all petroleum products and coal (see Table I). The federal government also imposes excise taxes on many transportation uses of methanol, ethanol, natural gas, and propane and imposes a fee on electricity produced from nuclear power plants. 

Coal from underground mines is assessed an excise tax of 1.10 per ton, and coal from surface mines is assessed a tax of 0.55 per ton, but in each case, a constraint is added that states that the tax cannot exceed 4.4 percent of the sales price. The receipts from these taxes are allocated to the Black Lung Disability Trust Fund. Monies from this trust fund are used to pay for health benefits to coal miners. 

Each of these excise taxes raises the price of the fuel for uses subject to the tax and might be expected to reduce the demand for petroleum and coal. However, to some extent the excise tax receipts col-... 

Highway Trust Fund Fuel Excise Taxes Gasoline Diesel fuel Other highway fuels Total... 

Leaking underground storage tank trust fund excise tax 0.2 Motororboat gasoline and special fuels excise taxes 0.2 Black lung trust fund coal excise tax 0.6... 

Estimated 1999 Federal Energy-Related Excise Tax Receipts SOURCE Joint Committee on Taxation, U.S. Congress, 1998. 

In a different context, purchasers of automobiles that do not meet specific fuel economy standards must pay a gas guzzler excise tax. This tax presumably decreases the demand for such vehicles and should indirectly affect demand for gasoline. 

Tax policy (including excise taxes and income tax provisions) operates in several different ways to affect energy supply and demand, for energy in general and for specific fuels. There is no consensus about the net overall effect on supply and demand, in part because th ese provisions operate in different sectors, in different markets, and sometimes in different directions. 

These contributions, in order to be deductible, must be paid by the last day of your taxable year, December 31 in most cases. For taxable years beginning after 1976, this requirement has been changed so that contributions may be made not later than the 45th day after the end of the taxable year and still be deductible for that taxable year. In addition these contributions must be in cash they may not be in property. There are times when an individual, by the last day authorized for making such contributions, does not have a complete picture of his total earnings for that year. Therefore, it is possible that he may contribute in excess of 15% of his earned income. If that were to occur, the individual would be able, prior to the due date of his return, to get back such excess contributions, plus interest on such excess, and thereby avoid a 6% excise tax penalty on the excess that was made. However, if the contributions are not returned, the employee is subject to the 6% excise tax penalty. 

In order for the contributions to be deductible, payments for both cash and accrual basis taxpayer may be made no later than the due date of the income tax return. If a contribution is made in excess of the 15% or 7500 limitations, the excess is subject to a yearly 6% excise tax penalty until such excess contribution is fully utilized. Distributions under a Keogh Plan may not commence before an individual reaches age 59%, except for reasons of disability or death. Like the individual retirement account, distributions must commence no later than the taxable year in which the individual attains age 70%. 

The term sales means net sales, i, total sales after deducting discounts, returns, allowances and excise taxes. Sales includes sales of the Drug Product whether manufactured by the company itself or purchased from sources outside the company and resold by the company in the same manufectured form as purchased. 

The CDC provided information about both the price including excise tax and the price excluding excise tax. We wiU analyze the behavior of the price excluding excise tax. 

In addition to the availability issue, short-term price pressure on all regulated solvents is being felt in the form of taxes. Market forces have historically created prices inflated in excess of the newly taxed price. As additional solvents come under increased regulatory scratiny, we may see the hazard excise tax used again, as it has proved successful in speeding the move away from ozone-depleting solvents. 

The defendant, a physician, was indicted for violating section 2 of the Harrison Narcotics Act by selling 500 tablets of heroin to a known addict, such sale not being part of any legitimate medical practice. The Harrison Act required that forms be filed with the government for any such nonmedical distribution of controlled drugs other provisions required payment of an excise tax. 

However, high U.S. diesel fuel prices may put a spoke in marketing efforts. Adding insult to injury is the added costs of transitioning to low-sulfur diesel fuel and a higher federal excise tax (24.4 cents per... 

To remedy this problem, in the mid-1980s, Minnesota converted its state ethanol incentive from a consumer-oriented excise tax exemption to a producer-oriented direct payment. Instead of reducing state gasoline taxes by a couple of pennies for a 10% ethanol blend, the state paid 20(2 /gal for ethanol produced within the state. To encourage the construction of... 

Permanent exemption for gasohol from the 4 /gallon federal gasoline excise tax. The President originally proposed an exemption of gasohol from the 4 /gallon federal excise tax in 1977. 

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