Governor Schwarzzengroper isn't groping for much of anything these days except money. Tax money. Rather than face the truth, that Californicate now spends double what it did ten years ago and forty percent more than when Arnold took office, the Governator has done two things. Gone groveling to DC for a bailout and proposed massive new taxes, one of which is an increase in California's wine tax from four cents a bottle to nearly thirty cents a bottle.
That's not a deal killer for the guys buying California's cult wines but it will be enough to spell the demise of Two Buck Chuck. As you would expect, putting a bottle of wine on retail shelves at $1.99 translates into razor thin margins. CEO Fred Franzia reiterates.....
Course, it's all moot anyway, Between GWB and Barry and all their stimulatin' we'll all be fondly reminiscing about Ten Buck Chuck (and remember when popcorn was only seventeen bucks a box?).
For the record, the wine tax is an excise tax that is paid at the producer or distributor level and then rolled into the final retail price, which is then subject to sales taxes.
Note: In some states Two Buck Chuck is Three Buck Chuck.
LA Times has the whole story here.
Tip of the glass to Mrs TWC
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