The United States is experiencing rapid growth of craft distilleries. The growth of this industry will rely on attracting new, innovative entrepreneurs much as the craft breweries did in the 1980s and 90s due in no small part to the legalization of home brewing in 1978.
The distillation process removes contaminants from the fermentation process and does not create alcohol; it only purifies the product of fermentation. The stories of poisonings are due to altered spirits which have had poisons added by unethical makers to increase their profits.
Home distillation has been legal in New Zealand since 1996. Where due to an increase of interest in quality spirits by hobbyist distillers, their tax revenues from distilled spirits have increased, negating any concern of diminishing tax dollars.