Download the NPRC Rum Excise Tax OP ED.
THE DEAL
- Under the deal, the USVI will use its future rum tax revenues to finance construction of a state-of-the-art distillery in St. Croix, plus give back at least 43% of future rum tax revenues for “marketing support” and “production expenses.” That’s in addition to a 90% corporate income tax break and a full exemption for property and gross receipts taxes.
- Captain Morgan is already the second largest distributor of rum in the United States, with a rapidly rising share of a growing rum market. With a multi-billion dollar package of marketing and tax subsidies, it would have an enormous market advantage over all of its competitors -- one that would be funded by tax dollars.
- Legislation now pending, H.R. 2122, would ensure that the rum tax rebate is used for social needs, not corporate bailouts. It would put a 10% cap on the amount of tax rebate funds that could be given back to the distillers themselves.
- Congress should pass the bill, H.R. 2122. The rum tax rebate was intended to provide for the social needs of poor people in the U.S. Territories, not foreign corporations.
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“We have to send a strong message to Congress that they must limit U.S. taxpayer dollars used to subsidize the marketing efforts of a foreign owned company. It is important that Congress take serious action and enact H.R. 2122 so that they may protect our hard earned taxpayer dollars.” Rafael A. Fantauzzi, President & CEO of the National Puerto Rican Coalition
