According to the article “Higher Taxes on Wine May Result From Health-Care Reform” by Mitch Frank on WineSpectator’s site, one of the biggest unknowns on President Obama’s health insurance plan is how it will all be paid for.  It is estimated to cost about 1.2 trillion dollars over the next ten years. 

Wine, spirits and beer makers are not encouraged by one proposal.  The Senate Finance Committee published a report on some different proposals to pay for the reform.  One suggestion is called the “lifestyle tax proposal” which recommends raising federal tax on alcohol, sodas and other sweet drinks.  They believe this would promote health by discouraging the purchase of these items. 

The idea to raise taxes on alcohol would affect wine especially.  The proposal calls to tax wine, beer and spirits at rates that are equal based on ounces of alcohol in each drink.  Currently wine is taxed at 21 cents a bottle and under the new plan it would increase to 70 cents per bottle, a 233% spike.  Because there are many options still on the table for the funding of the health care reform, the wine industry is remaining relatively quiet and waiting patiently for the final outcome of this ongoing debate.