Excise taxes seem to be another form of taxation that people pay without realizing they are paying another tax. For most of us, when we purchase a bottle of wine we already are paying a sales tax on the wine and therefore the fact that another tax is included in the price of the wine is not apparent.  The federal government puts on an excise tax and then states follow suit by adding another excise tax. The federal excise tax on wine remains consistent, 21 cents per bottle if the wine is less than 14 percent alcohol, then increases to 31 cents and 62 cents a bottle depending on the percentage of alcohol, and more for sparkling wines. Each state has a different excise tax which can vary from about 3 cents a bottle to as much as 50 cents a bottle for a table wine. Who pays this excise tax? The winery pays the excise tax and eventually the consumer will pay. Governor Paterson of New York wants to triple the excise tax on alcohol by changing it from 19 cents to 51 cents per gallon (about 4 cents to about 10 cents a bottle). By doing so, he is putting a substantial burden on the smaller wineries that produce perhaps 10,000 bottles. These wineries will have to pay about $9,600 more each year. Will this force the smaller wineries out of business? With an economic downturn, it has been noted that many wine consumers are purchasing less expensive wines. How many other states will increase the excise tax on alcohol? If  the prices of wine go up, consumers may decide to switch to less expensive wines coming in from other countries. I believe state governments should be supportive of  small businesses in America. I’d like to hear your opinions about increasing excise taxes on alcohol.