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This is still routinely done to avoid ethanol taxes. It's called "denatured alcohol". Ethanol that has been poisoned is not considered drinkable alcohol, so not subject to the taxes on drinkable alcohol.
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This is still done today if you buy tax free ethanol.

The intent is not to poison people, since the alcohol is not intended for consumption.

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Do you have a source?
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Not parent, but after 1 minute of googling: https://historyfacts.com/us-history/fact/the-u-s-government-...

Note that we are talking about industrial alcohol, which was not made for human consumption but could be distilled to make it palatable (before the toxic additives were added).

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Yep, never forget. The government literally poisoned people. Anytime I mention this I get eye rolls and immediate dismissal as a kook. It's quite frustrating.
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