Tax News Happy Repeal Day! Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Dec 4, 2014 - [Updated Aug 23, 2019] 1 min read On this day 81 years ago, the 21st Amendment to the U.S Constitution passed, ending the prohibition of alcohol in America. While the freedom to enjoy a cold beer or tasty cocktail is great, especially this time of year, there are strings attached—that’s right, taxes. But first, the background. You’ve all seen the mob movies and wondered what those cool speakeasy bars were really like. But what actually happened way back then when a simple brew after a long day of work wasn’t an option? It all started in the late 1800s when people believed that alcohol was the root of all evil. Prohibition and Temperance movements continued to grow in popularity in the early 19th century and before you knew it, on January 16, 1919, the 18th Amendment was passed, outlawing the manufacture, sale, and distribution of alcohol. Or so they thought. Turns out, the demand for booze skyrocketed shortly after the 18th Amendment passed, and organized crime (here’s looking at you, Al Capone) swept in to supply illegal alcohol to thirsty consumers. To make matters worse, state governments lost billions in tax revenue. Prohibition quickly lost popular support, but it wasn’t until 13 years later on December 5, 1933, now known as Repeal Day, that the 21st Amendment was passed to end Prohibition and save the day. But there’s a catch. Alcohol is taxed and it’s considered a Sin Tax so you’re actually paying more than you think for your favorite boozy treat, which could have a big impact on your savings. Now that you’re informed, raise your glass in honor of Repeal Day and toast to those before us who made it possible. Previous Post IRS Update: Tax Guidance Related to Ebola Outbreak Next Post IRS Announces E-file Opens January 20: Be the First in… Written by TurboTaxBlogTeam More from TurboTaxBlogTeam Leave a ReplyCancel reply Browse Related Articles Tax News Intuit TurboTax April Report: A Look at Refunds and S… Tax Planning April 15 is the Tax Deadline: 6 Things You Need to Know… Tax Planning Unable to Pay Your Tax Bill? Here’s What To Do Tax Tips Tax Credits 101: What They Are & How They Work Business How to Know if You Should Invest in Business Insurance Tax Deductions and Credits What Is the Standard Tax Deduction for 2023 – 202… 401K, IRA, Stocks Should You Use Your 401(k) or Retirement to Pay Off Deb… Tax Planning What Happens If You Don’t Pay Taxes? Understanding Pe… Tax Deductions and Credits Family Taxes: Take Advantage of Tax Savings Taxes 101 How Much Do You Have to Make to File Taxes? Demystifyin…