Amidst the snow and ice, couples across the country celebrated Valentine’s Day on Friday. This holiday is also known as Saint Valentine’s Day or the Feast of Saint Valentine for some. The day was first associated with love and all things romantic in the Middle Ages. It eventually evolved into an occasion where lovers expressed their love for each other by giving flowers, sweets, or a small personal note expressing affection. Which leads us to today.
What started as an innocent day to do something special for the one you love has turned into a moneymaking event, for retailers and the government alike. The National Retail Federation estimated that consumer spending on Valentine’s Day this year would hit $17.3 billion, though that was before the massive snowstorm hit the east coast and cancelled many flower deliveries and dinner reservations. For florists, this is one of the biggest moneymakers of the year. Many along the East Coast could not make their scheduled deliveries on the 13th and 14th due to the massive snow and ice storm that hit mid-week.
When we think of Valentine’s Day, our minds immediately jump to wine, chocolates, and dining out. These things have always been expensive, but a silent third party, the government, continuously drives up the price. Take a look at this breakdown of the main purchases made during the Valentine’s holiday from Americans for Tax Reform.
Roses & a Valentine: A must have. An estimated 233 million roses are grown for Valentine’s Day, and consumers will spend $1.9 billion on flowers. Cards will accompany the flowers: 145 million Valentine’s cards will be purchased for the occasion. The government will cash in $1.1 billion off the flowers and cards
Dinner: For three? $3.5 billion is spent dining out on Valentine’s Day, but 31% of the cost of the bill comes from government taxes.
Wine: If you’ve been saving a nice bottle of wine for the occasion, be sure to savor it — 33% of this purchase is due to government costs.
Chocolate: Consumers will spend nearly $1.3 billion on chocolate. Of this, 31% will be paid to the government. Your dessert just got a little less sweet.
Jewelry: In 2013, 6 million people expected or planned a marriage proposal on Valentine’s Day. This year, it is projected that $3.9 billion will be spent on diamonds, gold, and silver. The government drives of the price of your most important purchase, making up 36% of the cost, so choose wisely.
Cell Phones: If you’re in a long-distance relationship and can’t travel to see your sweetheart, hopefully you’ll still be able to give them a call. You might want to keep it short and sweet: Uncle Sam will be on the line as well, and he’ll be responsible for 40% of the cost of your bill.
Long Distance: Making a surprise visit to your long-distance loved one? Whether you’re driving or flying, you won’t be alone. 45% of the cost of gasoline is the result of government taxation, while other taxes and fees account for 44% of the cost of airfare.
When I read the list, the one that stuck out to me was wine. Even in the bad weather, bad economy, or just plain too busy to go out situations, many stay home and have a glass of wine with their sweethearts for Valentine’s Day. Not a bad choice. When winemaker Roman Roth was asked, "Is there anything more romantic than wine?" he responded in a way that made you want to pick up a glass.
There is a wonderful French proverb that says "In water one sees one’s own face; but in wine one beholds the heart of another." Wine is associated with romantic moments and memories; with capturing the heart of someone you love.
But before you share that beautiful glass of wine with your sweetheart, you should know that the government wants their fair share. The federal government imposes a tax on wine that can reach as high as $3.40 per gallon. Ranking 20th highest in the nation, North Carolina adds their $1 per gallon excise tax on wine too. Take a look at a map comparing all 50 states’ wine excise taxes below. In FY 2011-12, North Carolina collected $287 million in taxes on alcohol, including wine, beer, and spirituous liquors.
Click here for the Fiscal Update archive.
You can unsubscribe to this and all future e-mails from the John Locke Foundation by clicking the "Manage Subscriptions" button at the top of this newsletter.
