Currently, two bills in Congress aim at reducing the excise tax on beer in different ways:
- The Brewers Excise and Economic Relief Act (BEER) Act would cut the standard excise tax rate for beer sold in the United States by 50%--from $18 to $9/barrel. That's a tax savings of $1.68B/year, based on 2012 numbers. This bill benefits the entire brewing industry.
- The Small Brewer Reinvestment and Expanding Workforce (Small BREW) Act maintains the current $18/barrel excise tax rate for beer, but lowers the reduced rate for small brewers to $3.50/barrel for the first 60k barrels produced and to $16/barrel for barrels 60k+ through 2M. That's a tax savings of $65M/year, all of which would go to brewers producing <6M barrels/year. This bill benefits the craft beer industry.
Enacting either bill would be a victory for the beer industry and consumers, resulting in increased profits for brewers and their shareholders, more advertising, business expansion, and job growth. It may also lower prices to beer consumers.
A Fellow in Consumer Policy Studies at the Competitive Enterprise Institute,Michelle Minton, and a graduate of the Wake Forest University School of Law and practicing attorney in Philadelphia, David Scott, argue in CEI On Point that the best course of action is for Congress to repeal the excise tax.
Doing so would help produce all of the job creation and business expansion benefits of the BEER and Small BREW Acts to an even greater degree. It would also increase personal freedom by making a significant step toward eliminating controls on alcohol consumption that have dominated the alcohol industry since Prohibition's repeal.
Or, in shorthand, "let the good times roll!"
Let the discussion begin...
To read Michelle Minton and David Scott article, click on the following link:
"BEER and Small BREW Can Be Good for You."