Taxes on Wines HEARINGS BEFORE A Las SUBCOMMITTEE OF THE u. S. Cong Senate COMMITTEE ON FINANCE UNITED STATES SENATE SEVENTY-FOURTH CONGRESS SECOND SESSION ON H. R. 191 RELATING TO TAXES ON WINES AND H. R. 9185 AN ACT TO INSURE THE COLLECTION OF THE REVENUE ON PART 1 JANUARY 13, 15, AND 16, 1936 Printed for the use of the Committee on Finance UNITED STATES WASHINGTON : 1936 41765 COMMITTEE ON FINANCE PAT HARRISON, Mississippi, Chairman WILLIAM H. KING, Utah JAMES COUZENS, Michigan WALTER F. GEORGE, Georgia HENRY W. KEYES, New Hampshire DAVID I. WALSH, Massachusetts ROBERT M. LA FOLLETTE, JR., Wisconsin ALBEN W. BARKLEY, Kentucky JESSE H. METCALF, Rhode Island TOM CONNALLY, Texas DANIEL 0. HASTINGS, Delaware ARTHUR CAPPER, Kansas FELTON M. JOHNSON, Clerk SUBCOMMITTEE WILLIAM H. KING, Utah, Chairman ALBEN W. BARKLEY, Kentucky DANIEL 0. HASTINGS, Delaware JOSIAH W. BAILEY, North Carolina ARTHUR CAPPER, Kansas BENNETT CHAMP CLARK, Missouri Blanchard, George, Washington, D. C., representing the United States Buck, Hon. Frank H., a Representative in Congress from the State of De Vries, Marion, Washington, D. C., representing the Wine Insti- Doran, J. M., Washington, D. C., representing the Distilled Spirits Fiesinger, Hon. William L., a Representative in Congress from the Garrett, Paul, Brooklyn, N. Y., president, Garrett & Co.. California, statement submitted by - Lourie, Harry L., Washington, D. C., representing the National Assos ciation of Alcoholic Beverage Importers - McCabe, George P., Washington, D. C., representing the American McGovern, James P., Washington, D. C., representing the Industrial Alcohol Institute, Inc., letter and enclosures submitted by Montfort, Louis B., Washington, D. C., representing the Finger Lakes Wine Growers' Association and the Eastern Wine Growers' Associa- O'Connor, A. D., Washington, D. C., representing the United States 127 116 76 LIQUOR TAX ADMINISTRATION ACT TAXES ON WINES MONDAY, JANUARY 13, 1936 UNITED STATES SENATE, Washington, D. C. The subcommittee met, pursuant to call, at 10 a. m., in room 310, Senate Office Building, Senator William H. King presiding. Present: Senators King (chairman), Barkley, Bailey, Clark, and Capper. Also present: C. M. Hester, Stewart Berkshire, O. Norman Forrest, and Dr. O. V. Emery, of the Treasury Department, and L. H. Parker, chief of staff, and C. F. Stam, counsel, Joint Committee on Internal Revenue Taxation. Senator King. The committee will be in order. There have been referred to the subcommittee of the Committee on Finance of the Senate, H. R. 9185, H. R. 191, the proposed amendment to H. R. 9185 submitted by Senator Johnson, and the amendment to the Liquor Taxing Act of 1934, relating to the taxation of distilled spirits, offered by Senator Copeland. It seems to me that the proper course to pursue this morning is to have the representatives of the Government explain the various measures which are before us and the necessity of the legislation therein provided for, and then those who desire to be heard will have a full opportunity to submit their views. Mr. Hester, I think, is here representing the Treasury Department. Mr. HESTER. I would like to bring up with me, Mr. Chairman, three of my associates from the Treasury Department, Mr. Stewart Berkshire, Mr. O. Norman Forrest, and Dr. O. V. Emery. Senator King. Mr. Hester, explain the necessity for legislation which seems so ponderous as H. R. 9185 and the purposes of it, the defects, if any, in existing law, and whether this bill to which I have just referred goes further than curing defects in existing law and deals with other matters. You may proceed. STATEMENT OF C. M. HESTER, TREASURY DEPARTMENT Mr. HESTER. H. R. 9185 deals with many phases of internalrevenue taxation of distilled spirits, wine, and malt beverages. For the most part, the bill proposes technical amendments to the existing law on that subject. *Many of these amendments have as their object the more economical administration of these laws and the simplification of enforcement and avoidance of duplication in the work of tax collection. Other provisions of the bill propose the elimination of obsolete requirements of the statutes (most of them running 1 |