NY Times - Tax Inversion Cocktail
An article we enjoyed by Josh Barro of The New York Times
A TAX INVERSION IN A GLASS
You may have heard about “corporate inversion” this week. That’s a tax-avoidance maneuver in which an American company is acquired by a smaller foreign competitor, allowing it to move its tax residency abroad while keeping most of its operations in the United States.
We know what you’re thinking: Why should corporations have all the fun inverting? So for this week’s Upshot With a Twist, we found a delicious way you can save on taxes by inverting a cocktail.
We started with the Manhattan: a classic American cocktail, with a base of American bourbon or rye, that’s subject to extensive American liquor excise taxes. We challenged Jan Warren, the consulting bartender at thenew Midtown restaurant Urbo, to invert it: Make us a drink that’s mostly vermouth with just a touch of rye, a transaction that would allow us to claim our Manhattan wasn’t American anymore.
Jan came back with the “Gimme Shelter”: Cocchi Vermouth di Torino, Rittenhouse Rye, bitters and an orange twist, on the rocks. This cocktail, with a strong orange aroma, is a proud resident of Italy. It’s also a tax saver: While New York taxes distilled spirits at $6.43 a gallon, fortified wines like vermouth are subject to just 30 cents a gallon in tax.
The Obama administration is threatening executive action to discourage corporations from inverting. But even if President Obama stops you from moving your company overseas for tax purposes, you’ll probably still be able to enjoy this drink.
2 dashes Angostura bitters
1.5 oz. Cocchi Vermouth di Torino (sweet Italian vermouth)
1 oz. Rittenhouse Rye Whiskey
Combine ingredients in a rocks glass, add ice, stir briefly, and garnish with an orange twist.