Berger: Should US lower some wine taxes?

Isn’t it about time the federal government lowered the tax on some of the wines we make?

In view of the fact that the federal levy on wine is a two-tier tax, it seems obvious that the government views different kinds of wine in different ways. The rules were formulated decades ago.

Wines that were between 11% and 14% were listed as “table wines,” defined as dry wines that go with food. They were taxed at $1.07 per gallon, to be paid by the producer.

Wines that were above 14% alcohol were classified as dessert wines. Historically, they were generally fortified. In most cases, such wines were sweet (such as port, sherry, madeira and the like) and were considered luxuries. As such they were taxed at an additional $.50 per gallon.

These were the original, post-Prohibition definitions, which are still in force, and were established when the vast majority of wines made in the United States were not table wines and were not dry. Most of the wines we made and consumed were fortified with brandy, had alcohols nearer to 20%, and were after-dinner sippers.

Even though the definitions and the taxes have remained the same ever since, today wine has changed considerably and the two categories no longer apply much to the wines we are now making.

For one thing, winemakers in the 1930s had none of the tools or trade tricks that today’s winemakers have at their disposal. As a result, most so-called fine wine is well over 14% alcohol, and today’s wineries do not mind paying the additional tax since they can sell their wines for so much more than they ever did. Orders of magnitude more.

For another, the government’s recognition of a two-tier taxing system for wines establishes, at least subtly if not more obviously, the government’s role in helping to explain why Prohibition was at least a good-faith try at controlling alcoholism. Congress’ goal in 1920 was really all about human health.

Indeed, I believe the government had many motives in setting up more than one tier of wine taxation. One was to “punish” those who favored higher alcohols. The higher the alcohol, the more it cost to produce.

So why would the government not desire to have more than two tiers – and at the same time recognize what the writers of the 21st Amendment were trying to do: include temperance into the law? After all, the writers of that amendment chose to tax lower-alcohol wines at a lower rate.

So why not go one step further and lower the $1.07 tax on table wines by 50 cents per gallon for wines with less than 11% alcohol?

Such a move would encourage wineries to try to make lower-alcohol wines a part of their portfolios. We all know that higher-alcohol wines like the 17% Zinfandels that score so well with some people are far less safe than are the 8% alcohol Rieslings of Germany and the 9% alcohols of Vinho Verde.

The latter wines and their cousins have more positive health implications than do the “fruit bombs.” They have fewer calories per glass as well as a smaller alcoholic impact on the body.

Worldwide, major wineries and trade associations are working to lower alcohols on all wines. New Zealand recently established a trade organization to delve into lower-alcohol wines and its largest winery, Brancott, has already released into the U.S. market a Sauvignon Blanc and a Pinot Noir that have lower alcohol levels. The wines are called Flight Song.

Moreover, a number of Australian wineries have released wines with significantly lower alcohol levels, and the same sort of work is ongoing in other areas of the wine world.

A lower tax on under-11% alcohol wines would encourage U.S. wineries to work to create a new, alternative style of wine that could go a long way toward temperance without the risks and pitfalls we witnessed during Prohibition.

Wine of the Week: 2013 Hyatt Cabernet Sauvignon, Rattlesnake Hills ($13) – The lighter aroma of red cherry and berry scents with a trace of mint comes as a surprise since it’s aromatically not unlike some wines at three times the price. The mid-palate is also lighter, which means lower tannins than many other wines. It won a gold medal at the Recent Long Beach Grand Cru wine competition.

Sonoma County resident Dan Berger publishes “Vintage Experiences,” a weekly wine newsletter. Write to him at winenut@gmail.com.