Today, we've a quick look at how important taxation on alcohol was in various countries. It comes as absolutely no surprise that the UK was the most dependent on alcohol taxation. Which accounted for more than a third of tax revenue. That was a typical number for most of the 19th century.
In France and Germany, it was only around half of that. I wonder where they were getting all their tax from?
The only country in the table that comes anywhere close to the UK is the USA. Which makes Prohibition, which came along a couple of decades later, seem quite problematic. I'm sure any country would struggle with more than a quarter of tax revenue suddenly disappearing. That's one of the reasons banning alcohol was never really on the cards in the UK. Where would the tax have come from?
I was a bit surprised that France's total revenue was higher than the UK's. Was that simply down to a larger population?
| Revenue from Alcoholic Beverages 1898-99 | ||||
| Country | Year | Total Revenue | Alcohol Revenue | % from alcohol |
| United Kingdom | 1898-9 | £94,301,000 | £34,400,000 | 36% |
| France | 1898 | £116,448,000 | £22,051,000 | 19% |
| Germany | 1897-8 | £72,171,000 | £12,884,000 | 18% |
| United States | 1897-8 | £102,986,000 | £28,710,000 | 28% |
| Australian Colonies | 1898 | £29,142,000 | £2,965,000 | 10.20% |
| Canada | 1898 | $40,555,000 | $6,940,000 | 17.10% |
| Source: | ||||
| The Brewers' Journal vol. 36 1900, February 15th 1900, page 205. | ||||


3 comments:
One of Franklin Roosevelt's biggest official justifications for pushing for the repeal of Prohibition was that the US desperately needed the tax revenue. Which was true, but only part of the story.
Unofficially, he knew it turned out to be an unpopular joke, and both supporters and opponents of Prohibition knew which side he was on. But there was still a political advantage to acting like he was avoiding all of the more intense rhetoric and just focusing on practical matters.
The revenue pictures of most of the countries you cover were drastically changed by WWI. In the US, the income tax was legalized by Constitutional Amendment in 1909, further decreasing the Federal Government reliance on alcohol taxes.
In the US, we made up the income from alcohol taxes by passing our first income tax (which required a constitutional amendment first). Without an income tax, prohibition would have been fiscally impossible.
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