Captain Morgan Distillery Move Sparks Rum Wars Over Federal Tax Funds
• Captain Morgan rum distillery in U.S. Virgin Islands is at the center of a billion-dollar conflict called the Rum Wars • U.S. law requires federal rum taxes to be sent to Puerto Rico and U.S. Virgin Islands to help fund them • In 2008, Captain Morgan moved its operations from Puerto Rico to U.S. Virgin Islands, sparking the Rum Wars • The rum tax system was meant to help the territories but now mostly benefits big liquor companies • Hundreds of millions in U.S. taxpayer dollars now go to liquor companies instead of helping Puerto Rico and U.S. Virgin Islands