Monday, August 5, 2013

Free Trade In Wine

When the USA was formed, it was to be thirteen countries with a weak federal govt representing it collectively to the world.  That was hijacked immediately by Hamilton and his crew, but to this day we talk Jeffersonian freedom back legislate Hamiltonian mercantilism.

One fundamental point in the Constitution was free trade among the states. We make "free trade" agreements around the world.  But we do not have free trade in wine in USA.  Small businesses fought a battle against this and won a small victory in the Supreme Court, Granholm v Heald, 2005.

Now comes a study that tells us that what limited freedom was effected by that ruling, wine sales jumped 75% for small wineries.  Good right?

Not by those who study such things.  How can this be bad?  Why, less taxes are collected.  You see, we exist to pay taxes.
Based on the model, the interstate sale of wine in the United States rose from 6.2 percent of the market to about 10.4 percent. The evidence presented in the interstate demand model used in this analysis confirms declining tax revenue in opposition to the Court’s conclusions.
Never mind business got better for small wineries.  And never mind big wineries pay less taxes than small wineries.  And never mind the rules are written by the big wineries.  Academic studies paid for by taxpayers have as their reference point tax collection.

Never mind Hong Kong cut taxes on wine to zero and in four years became the world center of wine trade.  The difference is in Hong Kong the State does not exist for state's sake.

 Feel free to forward this by email to three of your friends.


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