Liquor

High Liquor Taxes and a Home Distillation Ban Guarantee a Thriving Booze Black Market

The courts have an opportunity to legalize small-scale distillation, but taxes remain a problem.

J.D. Tuccille | 5.27.2026 7:00 AM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL Add Reason to Google

Media Contact & Reprint Requests

(DPST/Newscom)

In January, police in Alabama arrested a Florida man (yeah, that guy) for allegedly transporting 81 gallons of moonshine. He certainly isn't the only player in that business. Bootlegging has a long and storied history in the United States. In a country that has a love/hate/really love relationship with alcoholic beverages, innovative entrepreneurs seeking to evade high taxes on distilled spirits illegally manufacture the stuff for sale, and the authorities justify a ban on home distillation in the name of collecting those taxes. People also smuggle from low-tax to high-tax states. The result is a game of cat-and-mouse that gave us legendary figures. It even inspired customized smuggling vehicles that inspired NASCAR racing.

You are reading The Rattler from J.D. Tuccille and Reason. Get more of J.D.'s commentary on government overreach and threats to everyday liberty.

URL

This field is for validation purposes and should be left unchanged.

Email(Required)

SUBSCRIBE

A Federal Ban Driven by Perverse Tax Reasoning

"Federal law strictly prohibits individuals from producing distilled spirits at home," according to the Alcohol and Tobacco Tax and Trade Bureau (yes, this is separate from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, because why wouldn't there be multiple federal agencies with overlapping jurisdiction?). "Producing distilled spirits at any place other than a TTB-qualified distilled spirits plant can expose you to Federal charges for serious offenses and lead to consequences including, but not necessarily limited to…up to 5 years in prison, a fine of up to $10,000, or both, for each offense."

TTB is part........

© Reason.com