Page 25 - ARUBA TODAY

BUSINESS Thursday 7 February 2019
A25

Report shows economic clout of US trade

Kentucky bourbon over decade deficit

narrows in

By BRUCE SCHREINER production, the study said.
Associated Press Nearly 7.5 million of those November
FRANKFORT, Ky. (AP) — A barrels contain bourbon
decade ago, bourbon — the highest level since By PAUL WISEMAN
barons poured bottles of 1972. Distillers paid a record Associated Press
their precious amber liquid $23 million in barrel taxes in WASHINGTON (AP) — The
on the Kentucky Capitol 2018, more than double U.S. trade deficit fell 11.5
steps to protest a looming from a decade ago. percent in November
tax hike. On Wednesday, House Speaker David Os- to the lowest level since
industry officials stood with borne said the tax and June.
lawmakers to cheer anoth- regulatory relief for the spir- The Commerce Depart-
er round of growth in the its industry was a “prime ment said Wednesday
spirits sector. example” of how govern- the gap between what
The cause for celebration ment should work with the the United States sells
was a new study showing private sector. and what it buys from
Kentucky bourbon flexing “It is an incredible testa- other countries dropped
more economic clout as it In this Wednesday, April 8, 2009, file photo, bottles of bourbon ment to what business can to $49.3 billion from a re-
matures, leading a distilled are on display in a case at the Heaven Hill Bourbon Heritage do when government gets vised $55.7 billion in Oc-
spirits industry that contrib- Center in Bardstown, Ky. out of the way,” said Os- tober.
utes $8.6 billion annually Associated Press borne, R-Prospect. American exports fell 0.6
to the state’s economy. Lawmakers followed tax and regulatory relief. Despite the industry’s good percent to $209.9 billion,
Its economic output in- through a few years ago by After the tax credit took ef- times, American whiskey but imports fell faster,
creased 60 percent in the approving a credit to offset fect, the industry ramped makers are facing head- dropping 2.9 percent to
past decade in Kentucky, the cost of a tax on aging up its expansion, which winds from retaliatory tariffs $259.2 billion.
where most of the world’s barrels of distilled spirits, ef- “meant more people work- slapped on their products The politically sensitive
bourbon is crafted. fectively eliminating it for ing, more distillation, more in some markets, including deficit with China in the
The sector also pointed distillers. Distillers still pay the storage,” said Stivers, R- the European Union, as a trade of goods such as
to big increases in jobs, tax, and the money goes Manchester. result of broader trade dis- cars and cellphones fell
capital investment and tax mainly to public education, It also stirred more tax rev- putes between the U.S. and 7.3 percent to $35.4 bil-
revenue.“This is a monu- but they get the money enue for government. The several other countries. lion.
mental success story,” Rick back through the tax cred- study showed that spirits Distillers are concerned President Donald Trump
Robinson, chairman of the it. State leaders also eased production and consump- the tariffs “put continued campaigned on a
Kentucky Distillers’ Associa- regulations on the spirits in- tion generate about $235 growth at risk,” Samu- pledge to slash Ameri-
tion board of directors, said dustry. million in annual tax rev- els said. The new study ca’s trade deficit with the
at the statehouse event Bill Samuels Jr., who retired enue for state and local showed Kentucky exports rest of the world and has
Wednesday. Industry of- after a long career as top governments in Kentucky, of bourbon and other spirits imposed import taxes on
ficials credited Kentucky executive at Maker’s Mark, up 88 percent from 2009. topped $450 million in 2017. foreign steel, aluminum
lawmakers with speeding said the study reaffirmed Kentucky distilleries are in The value of Kentucky spir- and Chinese products.
the momentum by setting that lawmakers who sup- the middle of a $2.3 billion its exports has tripled in 20 But the January-Novem-
a new policy course for the ported those policies “got building boom. years. KDA officials noted ber 2018 deficit was still
sector. The idea was that it right.” About 8.1 million barrels of that the industry-backed up 9 percent from a year
lowering the spirits indus- Samuels, who took part in spirits were aging in Ken- study didn’t delve into the earlier.
try’s tax burden at a time the anti-tax protest a de- tucky last year, up 61 per- impact of tariffs, since it America ran a $71.6 bil-
when it was growing would cade ago, credited Sen- cent from 10 years ago as was based almost entirely lion deficit in the trade of
increase the flow of tax rev- ate President Robert Stivers more distilleries opened on data available before goods, down from $78.3
enue to the state. with leading the effort for and existing ones boosted tariffs were imposed. q billion in October. q