Craft Beer’s Overtaxed, Senators Say
Eighteen senators want to encourage drinking craft beer. They’re touting new legislation to slash the excise tax on beer produced by smaller breweries.
The bipartisan group, led by Maryland Democrat Benjamin L. Cardin and Maine Republican Susan Collins, wants to cut the excise tax in half, to $3.50 a barrel, on the first 60,000 barrels of beer. Other taxes would also be reduced.
“Maine is home to dozens of unique craft breweries and brewpubs that invigorate our economy by providing more than 1,000 jobs and drawing countless tourists into our state,” Collins said in a statement.
Senate Democratic Conference Vice Chairman Charles E. Schumer is among those backing the effort. He has no shortage of breweries in New York. In a statement, he alluded to some communities in parts of the state that have faced prolonged losses of manufacturing jobs.
“Small breweries throughout Upstate New York not only brew great beer, they also pour jobs into communities across the country,” Schumer said, deploying a pun.
“Craft breweries are the crown jewels of so many of our communities, and often set up shop in vacant buildings and warehouses and revitalize downtowns across the country. By cutting taxes for these small breweries, we can help put more money back into their businesses and brew further economic development and growth,” he added.
The push to reduce this small brewer tax rate comes ahead of American Craft Beers Week, which kicks off on Monday. It is just one of a slew of narrowly targeted tax provisions that could come under scrutiny as part of a bid to overhaul and simplify the federal tax code. Cardin, Schumer and several other co-sponsors sit on the tax-writing Finance Committee.
http://blogs.rollcall.com/wgdb/craft-beers-overtaxed-senators-say/
= new reply since forum marked as read
...I don't see any evidence that the current federal excise taxes or "other taxes to be reduced" are impeding the growth of the industry.
From the Brewers Association:
Craft Brewing Facts
Craft brewers currently provide an estimated 108,440 jobs in the U.S., including serving staff in brewpubs.
Growth of the craft brewing industry in 2012 was 15% by volume and 17% by dollars compared to growth in 2011 of 13% by volume and 15% by dollars.
Craft brewers sold an estimated 13,235,917 barrels* of beer in 2012, up from 11,467,337 in 2011.
The craft brewing sales share in 2012 was 6.5% by volume and 10.2% by dollars.
Craft brewer retail dollar value in 2012 was an estimated $10.2 billion, up from $8.7 billion in 2011.
As of March 18, 2013, the Brewers Association is aware of 409 brewery openings in 2012 (310 microbreweries and 99 brewpubs) and 43 brewery closings (18 microbreweries and 25 brewpubs).
2,347 craft breweries operated for some or all of 2012, comprised of 1,132 brewpubs, 1,118 microbreweries and 97 regional craft breweries.
Craft beers are diverse, high value, quality products. These quality beers command a higher price than the watery swill that constitutes most of the other 93.5% of the beer consumed in the U.S. The best way to continue to grow the craft brewing industry is to raise the standard of living and grow the middle class in the United States. Get craft beer consumption up to 25% by volume and 40% by dollars and then the Brewers Association and the communities they serve will really benefit.
Sharing fine beers is a great social activity
Sitting in front of the TV polishing off 18 cans at $.60/can not so much
