Wine & Spirits Wholesalers of America

WSWA monitors many federal issues that are important to our members and the industry. Take a look at the issues below for more information.

H.R. 5034 - The CARE Act

Representative Bill Delahunt (D-Mass.) with co-sponsors Mike Quigley (D-Ill.), Howard Coble (R-N.C.) and Jason Chaffetz (R-Utah) introduced the CARE Act seeking to "support State based alcohol regulation, to clarify evidentiary rules for alcohol matters, to ensure the collection of all alcohol taxes, and for other purposes."

Section 5011, Domestic Spirits Tax Credit

Long the number one federal legislative priority for WSWA, the Domestic Spirits Tax Equity Act, which created the Section 5011 domestic spirits tax credit, became law in August 2005 as part of Public Law 109-59.

The Section 5011 credit helps level the playing field between domestically and foreign produced distilled spirits by creating fairness between the federal excise tax treatment of these products.
 
Since Prohibition was repealed in 1933 by the 21st Amendment to the Constitution, the federal excise tax treatment of domestic and foreign was different, to the economic disadvantage of domestic brands. The Domestic Spirits Tax Equity Act helps remedy this inequity, creating a more level playing field in the domestic spirits marketplace.

Estate Tax Repeal

WSWA supports elimination of the federal estate tax or “death tax.”

As multi-generation, family-owned businesses, WSWA member companies support repeal of the estate tax. The estate tax is unfair double taxation, and prevents one generation from passing along the work of a lifetime to another generation.

WSWA is in the forefront of the Family Business Estate Tax Coalition, a group dedicated to repeal of the federal estate tax.

LIFO Repeal

WSWA opposes attempts to repeal the “Last-In-First-Out” (LIFO) accounting method for inventory.

The LIFO accounting method for inventory is a preferred and generally accepted accounting method which has been in use for over 70 years. LIFO is used by a wide spectrum of the economy, from manufacturers to distributors to retailers – any business which holds inventory. Repeal of LIFO would mean an immediate, massive retroactive tax and much higher taxes in the future for WSWA member companies using LIFO.

WSWA is a founding member of The LIFO Coalition, a group formed by the National Association of Wholesaler-Distributors (NAW) to fight any proposal to repeal or phase out LIFO. The LIFO Coalition consists of hundreds of trade associations representing a broad range of manufacturers, distributors, retailers, and service providers.

FDA Bioterrorism Act

The Bioterrorism Act of 2002, enacted by Congress following 9-11, defined alcohol as food for this first time, and holds wine and spirits distributors responsible for maintaining the safety of the nation’s food supply.
 
Pursuant to the Bioterrorism Act, the Food and Drug Administration (FDA) in 2004 promulgated a series of regulations on the food industry—including wine and spirits distributors—to help maintain the safety of the nation’s food supply.

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