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Jack Daniel's Distillery Targeted for More Taxes
http://abcnews.go.com ^

Posted on 10/21/2011 8:04:42 AM PDT by jakerobins

For decades, Jack Daniel's whiskey has celebrated its small Tennessee hometown of Lynchburg with folksy, black-and-white advertisements urging folks to slow down and have a sip.

Now local officials want the maker of the world's top-selling whiskey to pay a bigger bar tab as they struggle with their budget. How does up to $5 million sound?

A measure approved by the Moore County Council asks the Tennessee legislature to authorize a local referendum on whether the distillery should pay that much in new taxes on the 500,000 barrels it fills with whiskey each year.

(Excerpt) Read more at abcnews.go.com ...


TOPICS: Miscellaneous; News/Current Events; US: Tennessee
KEYWORDS: alcohol
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To: GOYAKLA

Another iconic American manufacturer — Harley-Davidson — threatened to move it’s final assembly operations out of York, PA when the state officials started talking about a major real estate tax hike. Former Gov. Rendell backed off and the plant stayed — for the time being.

Frankly, I think they are on their way out. Harley will eventually build more modern facilities in a right-to-work state. (They’ve already done this for Sportsters & Softails. All that’s left in York is the heavy-weight bikes.) I don’t think that they were really ready to make good on their threat this time around. The next time the state, county or city come knocking for a tax increase I expect that they will be ‘gone’.


41 posted on 10/21/2011 9:19:14 AM PDT by Tallguy (You can safely ignore anything that precedes the word "But"...)
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To: jakerobins
From the article: "Lynchburg and the people of Moore County have been involved in the success of the Jack Daniel's brand; the value of the brand worldwide is due in no small measure because they have marketed our town and people successfully," said Charles Rogers, who has led the campaign for the new tax.

Mr Rogers has this a little backasswards. As I see it the success of the town " ... is due in no small measure because they [Jack Daniels] have marketed our town and people successfully,"

Now, if Lynchburg had paid for advertising that Jack Daniels was a fine whiskey, they might have a point. But as I recall you cannot even BUY Jack Daniels in Lynchburg. Jack Daniels' advertising has increased the value of Lynchburg as a tourist attraction, not the other way around.

42 posted on 10/21/2011 9:20:07 AM PDT by In Maryland ("If stupidity got us into this mess, why can't it get us out?" - Mark Twain)
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To: jakerobins
>>> Whiskey Rebellion anyone....

Gives a whole new dimension to the shot heard around the world.


43 posted on 10/21/2011 9:24:03 AM PDT by tlb
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To: Slump Tester

Southern Indiana has lots of limestone. I’m sure we could find a stream for them to use.


44 posted on 10/21/2011 9:26:19 AM PDT by AFreeBird
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To: Stonewall Jackson

Is that where Knob Creek is made ?
My personal favorite.


45 posted on 10/21/2011 9:35:36 AM PDT by woodbutcher1963
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To: In Maryland

This “logic” sounds alot like Elizabeth Warren to me. That we need to spread the wealth because they used the roads of the town. I don’t understand how these libs come up with these convaluted idiotic ideas!


46 posted on 10/21/2011 9:41:53 AM PDT by jakerobins
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To: jakerobins

If you are ever in the area, take the tour. It is fascinating. Basically an almost 200 year story of their ongoing battle with “the Revenuers”.

And the folks in Lynchburg must know their history. The distillery has moved twice before (once to North Alabama, once to St. Louis), trying to stay ahead of state-by-state prohibition laws. I’m sure they can pick up and leave again if you force the issue.


47 posted on 10/21/2011 9:46:26 AM PDT by Buckeye McFrog
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To: Terry Mross
That’s what the local government is counting on. The move would be expensive. There are very large buildings sittin’ on top of the hills that are packed full of barrels of aging whiskey.

Yeah - I know you're right.

I would just like to see them plant a seed of uncertainty in the minds of the locals.

Can you imagine the uproar against these taxers if the locals thought there was even a possibility the distillery might move some, or all, of the business, jobs and tax money elsewhere?


48 posted on 10/21/2011 9:49:13 AM PDT by Iron Munro ('We do have tough gun laws in Massachusetts; I support them.' -- Mitt Romney)
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To: Slump Tester
They can’t move. They’d lose their spring with the perfect limestone filtered water.

Set up a distilling operation in Texas under a Delaware corporation, leave only a "water company" in Tennessee; also a Delaware corp. Set them both up as wholly-owned subsidiaries of a Delaware holding company.

No more corporate income taxes on the distilling operation; only the Tennessee water corporation would pay the 6.5% Tennessee corp rate. Purchase your own rail cars and ship the water via rail from Tennessee; Patriot Rail Corp might be a place to start calling for that.
49 posted on 10/21/2011 9:55:27 AM PDT by PieterCasparzen (We need to fix things ourselves)
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To: woodbutcher1963

Knob Creek is made by Jim Beam at their Clermont distillery, about twenty miles from here. Maker’s Mark is a few miles closer to me, and the Heaven Hill distillery is about thirty miles away.


50 posted on 10/21/2011 9:58:23 AM PDT by Stonewall Jackson (Democrats: "You will never find a more wretched hive of scum and villainy.")
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To: Tax-chick
How different could the water be?

Depends on whether it runs through the same kind of limestone as the JD site.

51 posted on 10/21/2011 10:15:12 AM PDT by JimRed (Excising a cancer before it kills us waters the Tree of Liberty! TERM LIMITS, NOW AND FOREVER!)
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To: US Navy Vet

“water of a similar nature”

Colorado mountain fresh water.


52 posted on 10/21/2011 10:23:35 AM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: CodeToad

No it has to be EXTREMELY Hard(and have a HIGH Iron level) AND is has to be EXTREMELY plentiful.


53 posted on 10/21/2011 10:27:42 AM PDT by US Navy Vet (Go Packers! Go Rockies! Go Boston Bruins! See, I'm "Diverse"!)
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To: Tallguy

Your points are well understood here. Companies in order to survive have to make a profit. To continually have some Parasites suck money from this will collapse all.
A good example of this General Obama Motors fight with Chrysler. Hammer & nail.
Yesterday on FBN the CEO of the Chicago Board of Trade told Ms. Willis that if the City of Chicago and the State of Illinois would raise their taxes he was ready to move the entire operations to a less taxing state. He has already been approached by Governors from other states, mainly Rick Scott of my Florida.
Be it known, a Right to work state and also one with NO INCOME TAX.

CBOT & CBOE bring in on down!


54 posted on 10/21/2011 10:43:09 AM PDT by GOYAKLA (Re-flush Congress in 2012, some crap remains!)
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To: US Navy Vet

I don’t think I have ever had harder water than here. Plentiful? Las Vegas fills their swimming pools with it.


55 posted on 10/21/2011 11:44:57 AM PDT by CodeToad (Islam needs to be banned in the US and treated as a criminal enterprise.)
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To: Iron Munro; Terry Mross

What Jack Daniels would do in that situation — I bet — is create an expanded visitors center in front of their aging/warehousing operation. Move the distilling (and the bulk of the employees) elsewhere. All you’ll have left is Greeters, a few Traffic Managers and Tow-motor operators. Any surplus grounds will not be needed and will be sold off to lessen their tax liability.

There was a bourbon distillery a few miles from my house (Michters). It shut down, but the ricks (?) remained along with the visiting center for a few years. Now it’s totally gone.


56 posted on 10/21/2011 12:14:06 PM PDT by Tallguy (You can safely ignore anything that precedes the word "But"...)
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To: Tallguy

Good points.


57 posted on 10/21/2011 4:38:09 PM PDT by Iron Munro ('We do have tough gun laws in Massachusetts; I support them.' -- Mitt Romney)
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