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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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Furthermore denatured alcohol is also flavored in such a way that normal person would throw up on spot how bitter it is.

https://en.wikipedia.org/wiki/Denatonium


Beyond the recognized "Formulas" such as Formula No. 40-B, there are a number of other "flavors" of denaturants, pages of them starting at section 21.91:

https://www.ecfr.gov/current/title-27/chapter-I/subchapter-A...

The only purpose is not to "jeopardize the revenue."

In that respect, regardless of the rate being levied, the result on behavior was intended to be very strict and immediate.




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