When the budget came out, no such major change was included. There was a tiny change proposed, allowing IRS investigators to work on excise tax violations of alcohol law.
The Wine Institute was ready anyway with a letter (at left) signed by seven US Senators opposing the change. I'm not a tax expert, so I decided to look into it and find out why.
Two weeks later, I finally have the answer. I'm going to quote the email I got exactly, which I may only credit to "an administration official on background:" (but really, it's Michelle ... kidding)
"The Alcohol and Tobacco Tax and Trade Bureau (TTB) in Treasury currently collects alcohol excise taxes, but they do not have the manpower to initiate enforcement investigations. Last year, both the House and Senate included funding for TTB to hire agents to enforce the collection of these taxes. Rather than have TTB start a new agent cadre, the Budget proposes to allow existing IRS agents to enforce this provision on the behalf of TTB. This is not a new tax, just the enforcement of an existing one, and the Budget tries to enforce compliance in the more efficient way."
That makes sense to me and I don't really understand why the Wine Institute and seven US Senators oppose it.
Nor will I. The Wine Institute refused to answer my questions about it, saying only (again "on background," not from a quotable source) that "we don't think the proposal has a chance of being approved." Cocky.