Proposed Increase of Federal Excise Tax a Serious Threat to Small Brewers Part1

[FONT=Arial, Helvetica, sans-serif]A message from Charlie Papazian

Dear Beer Enthusiast,[/FONT]
[FONT=Arial, Helvetica, sans-serif]Small brewers are facing an imminent and extremely serious threat to their businesses. The consequences of remaining silent have the very real potential of reducing your choice of beer and dramatically increasing the price of any beer that you purchase.[/FONT]
[FONT=Arial, Helvetica, sans-serif]The Senate Finance Committee in Washington, DC is currently considering a proposal to increase and equalize the excise tax for alcohol beverages as part of healthcare reform deliberations. This proposal would triple the excise tax for 4.5% ABV beer and impose even higher excise tax rates for higher ABV beers. [/FONT]
[FONT=Arial, Helvetica, sans-serif]If such a proposal becomes reality, there is no question that many small brewery businesses will suffer, some will close and consumers will face higher prices and diminished choice in the marketplace.

The Brewers Association brewery members and leadership have been actively engaged in building the case against an excise tax increase, recently submitting a letter to the Committee outlining our opposition.

We need you to speak out now. Today or tomorrow at the latest.

If you live in the following states it is most urgent that you contact your Senator who is on the Senate Finance Committee: [/FONT]
[FONT=Arial, Helvetica, sans-serif] Arizona [/FONT] [FONT=Arial, Helvetica, sans-serif] Nevada [/FONT] [FONT=Arial, Helvetica, sans-serif] Arkansas [/FONT] [FONT=Arial, Helvetica, sans-serif] New Jersey [/FONT] [FONT=Arial, Helvetica, sans-serif] Delaware [/FONT] [FONT=Arial, Helvetica, sans-serif] New Mexico [/FONT] [FONT=Arial, Helvetica, sans-serif] Florida [/FONT] [FONT=Arial, Helvetica, sans-serif] New York [/FONT] [FONT=Arial, Helvetica, sans-serif] Idaho [/FONT] [FONT=Arial, Helvetica, sans-serif] North Dakota [/FONT] [FONT=Arial, Helvetica, sans-serif] Iowa[/FONT] [FONT=Arial, Helvetica, sans-serif] Oregon [/FONT] [FONT=Arial, Helvetica, sans-serif] Kansas [/FONT] [FONT=Arial, Helvetica, sans-serif] Texas [/FONT] [FONT=Arial, Helvetica, sans-serif] Kentucky [/FONT] [FONT=Arial, Helvetica, sans-serif] Utah [/FONT] [FONT=Arial, Helvetica, sans-serif] Maine [/FONT] [FONT=Arial, Helvetica, sans-serif] Washington[/FONT] [FONT=Arial, Helvetica, sans-serif] Massachusetts [/FONT] [FONT=Arial, Helvetica, sans-serif]West Virginia[/FONT] [FONT=Arial, Helvetica, sans-serif] Michigan [/FONT] [FONT=Arial, Helvetica, sans-serif] Wyoming [/FONT] [FONT=Arial, Helvetica, sans-serif] Montana [/FONT] [FONT=Arial, Helvetica, sans-serif]If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Your ask of them is simple:

Oppose the Tax Increase. Let them know that you oppose, in the strongest possible terms, raising the federal excise tax on beer because of the serious consequences it would have on small brewers and the craft beer they brew. Additional talking points appear below.

Once again: If one of your Senators sits on the Senate Finance Committee (roster of members below), urge them to oppose this proposal in committee deliberations.

If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.[/FONT]
[FONT=Arial, Helvetica, sans-serif]Take Action - Call and/or email your Senators’ Washington or district offices and make your personal case against this massive excise tax increase.

As always, thanks for your support.

[/FONT][FONT=Arial, Helvetica, sans-serif]Charlie Papazian

President, Brewers Association[/FONT]
[FONT=Arial, Helvetica, sans-serif]Senate Finance Committee Members: [/FONT]
[FONT=Arial, Helvetica, sans-serif] Baucus, Max (MT), Chairman [/FONT] [FONT=Arial, Helvetica, sans-serif] Bingaman, Jeff (NM) [/FONT] [FONT=Arial, Helvetica, sans-serif] Bunning, Jim (KY) [/FONT] [FONT=Arial, Helvetica, sans-serif] Cantwell, Maria (WA) [/FONT] [FONT=Arial, Helvetica, sans-serif] Carper, Thomas R. (DE) [/FONT] [FONT=Arial, Helvetica, sans-serif] Conrad, Kent (ND) [/FONT] [FONT=Arial, Helvetica, sans-serif] Cornyn, John (TX) [/FONT] [FONT=Arial, Helvetica, sans-serif] Crapo, Mike (ID) [/FONT] [FONT=Arial, Helvetica, sans-serif] Ensign, John (NV) [/FONT] [FONT=Arial, Helvetica, sans-serif] Enzi, Michael B. (WY) [/FONT] [FONT=Arial, Helvetica, sans-serif] Grassley, Chuck (IA), Ranking Member [/FONT] [FONT=Arial, Helvetica, sans-serif] Hatch, Orrin G. (UT) [/FONT] [FONT=Arial, Helvetica, sans-serif] Kerry, John F. (MA) [/FONT] [FONT=Arial, Helvetica, sans-serif] Kyl, Jon (AZ) [/FONT] [FONT=Arial, Helvetica, sans-serif] Lincoln, Blanche L. (AR) [/FONT] [FONT=Arial, Helvetica, sans-serif] Menendez, Robert (NJ) [/FONT] [FONT=Arial, Helvetica, sans-serif] Nelson, Bill (FL) [/FONT] [FONT=Arial, Helvetica, sans-serif] Roberts, Pat (KS) [/FONT] [FONT=Arial, Helvetica, sans-serif] Rockefeller, John D. (WV) [/FONT] [FONT=Arial, Helvetica, sans-serif] Schumer, Charles E. (NY) [/FONT] [FONT=Arial, Helvetica, sans-serif] Snowe, Olympia J. (ME) [/FONT] [FONT=Arial, Helvetica, sans-serif] Stabenow, Debbie (MI) [/FONT] [FONT=Arial, Helvetica, sans-serif] Wyden, Ron (OR) [/FONT] [FONT=Arial, Helvetica, sans-serif]Small brewers are small Main street businesses, typically employing 10 to 50 employees. [/FONT]

• [FONT=Arial, Helvetica, sans-serif]Small brewers represent only 4% of the entire U.S. beer market by volume, with 95% of them being very small businesses (producing 15,000 barrels or less per year). [/FONT]

[FONT=Arial, Helvetica, sans-serif]We strongly oppose proposals to increase the excise tax on beer.[/FONT]

• [FONT=Arial, Helvetica, sans-serif]Proposals to increase and equalize the tax among all types of alcohol will tax small brewers at the highest rates because our specialty, gourmet and innovative beers typically have higher alcohol contents.[/FONT]
• [FONT=Arial, Helvetica, sans-serif]Brewers already pay a disproportionately higher share of taxes compared with other products – federal, state and local taxes represent over 40% of the retail price for beer while the same taxes equal nearly 24% of the price for all other purchases. [/FONT]

[FONT=Arial, Helvetica, sans-serif] Higher taxes will worsen the economic recession – resulting in less competitive products, reduced sales and revenues, lost jobs and, for some small brewers, business closures. [/FONT]

• [FONT=Arial, Helvetica, sans-serif]$1 per case excise tax increase will typically cost the consumer at least $1.69 due to successive mark-ups as the case moves from brewer to wholesaler to retailer. [/FONT]
• [FONT=Arial, Helvetica, sans-serif]Many small brewers are struggling to deal with the consequences of the 2008 spike in ingredient and operational costs. [/FONT]

I wrote my senator and let her know that increasing taxes on the mass-produced beers of lower ABV will likely yield more $$ and help protect the small business people brewing quality beers with care and concern.

Yes, in the "Spread the Wealth" mantra going around these days, a hefty tax increase on brewers who have at least a 10% market share is in order. Perhaps only tax foreign owned brewing conglomerates?

Of course that tax would be passed on to the BMC swilling consumer.

The craft industry in AZ is particularly vulnerable. This morning, I wrote to Jon Kyl (R-AZ) who is on the finance committee. AZ sells a tremendous amount of craft beer, most of it originating from out of state.

We cannot afford to be foreign beer dependent.

Seriously. We can't lose another brewery here.


Here is how to reach your Senator:
http://www.senate.gov/general/contact_information/senators_cfm.cfm

Here is who is on the Finance Committee:

[FONT=Arial, Helvetica, sans-serif]Senate Finance Committee Members: [/FONT]
[FONT=Arial, Helvetica, sans-serif] Baucus, Max (MT), Chairman
[/FONT] [FONT=Arial, Helvetica, sans-serif] Bingaman, Jeff (NM)
[/FONT][FONT=Arial, Helvetica, sans-serif]Bunning, Jim (KY)
[/FONT][FONT=Arial, Helvetica, sans-serif]Cantwell, Maria (WA)
[/FONT][FONT=Arial, Helvetica, sans-serif]Carper, Thomas R. (DE)
[/FONT][FONT=Arial, Helvetica, sans-serif]Conrad, Kent (ND)
[/FONT][FONT=Arial, Helvetica, sans-serif]Cornyn, John (TX)
[/FONT][FONT=Arial, Helvetica, sans-serif]Crapo, Mike (ID)
[/FONT][FONT=Arial, Helvetica, sans-serif]Ensign, John (NV)
[/FONT][FONT=Arial, Helvetica, sans-serif]Enzi, Michael B. (WY)
[/FONT] [FONT=Arial, Helvetica, sans-serif] Grassley, Chuck (IA), Ranking Member [/FONT] [FONT=Arial, Helvetica, sans-serif]
Hatch, Orrin G. (UT)
[/FONT][FONT=Arial, Helvetica, sans-serif]Kerry, John F. (MA)
[/FONT][FONT=Arial, Helvetica, sans-serif]Kyl, Jon (AZ)
[/FONT][FONT=Arial, Helvetica, sans-serif]Lincoln, Blanche L. (AR)
[/FONT][FONT=Arial, Helvetica, sans-serif]Menendez, Robert (NJ)
[/FONT][FONT=Arial, Helvetica, sans-serif]Nelson, Bill (FL)
[/FONT][FONT=Arial, Helvetica, sans-serif]Roberts, Pat (KS)
[/FONT][FONT=Arial, Helvetica, sans-serif]Rockefeller, John D. (WV)
[/FONT][FONT=Arial, Helvetica, sans-serif]Schumer, Charles E. (NY)
[/FONT][FONT=Arial, Helvetica, sans-serif]Snowe, Olympia J. (ME)
[/FONT][FONT=Arial, Helvetica, sans-serif]Stabenow, Debbie (MI)
[/FONT][FONT=Arial, Helvetica, sans-serif]Wyden, Ron (OR) [/FONT]

Proposed Increase of Federal Excise Tax A Serious Threat to Small Brewers and Your Beer Choice —Contact Your Senators Now

We received the following action alert from Support Your Local Brewery, a national, grassroots partnership of beer enthusiasts, professional trade associations and brewers dedicated to supporting and protecting the legislative and regulatory interests of small, traditional and independent craft breweries. Most action alerts are state by state and this is the first national one I’ve seen. They’re asking for everyone to contact their U.S. Senator, but especially those of you living in the following states:

The reason these states are so important is that’s where the Senate Finance Committee members are from, so it’s most important that they hear from constituents in their home states.

Here’s the information from the action alert.

Small brewers are facing an imminent and extremely serious threat to their businesses. The consequences of remaining silent have the very real potential of reducing your choice of beer and dramatically increasing the price of any beer that you purchase.

The Senate Finance Committee in Washington, DC is currently considering a proposal to increase and equalize the excise tax for alcohol beverages as part of healthcare reform deliberations. This proposal would triple the excise tax for 4.5% ABV beer and impose even higher excise tax rates for higher ABV beers.

If such a proposal becomes reality, there is no question that many small brewery businesses will suffer, some will close and consumers will face higher prices and diminished choice in the marketplace.
The Brewers Association brewery members and leadership have been actively engaged in building the case against an excise tax increase, recently submitting a letter to the Committee outlining our opposition.

We need you to speak out now. Today or tomorrow at the latest.

If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Your ask of them is simple:

Oppose the Tax Increase. Let them know that you oppose, in the strongest possible terms, raising the federal excise tax on beer because of the serious consequences it would have on small brewers and the craft beer they brew. Additional talking points appear below.

Once again: If one of your Senators sits on the Senate Finance Committee (roster of and links to members below), urge them to oppose this proposal in committee deliberations.

If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Take Action: Call and/or email your Senators’ Washington or district offices and make your personal case against this massive excise tax increase.

*


DEMOCRATSREPUBLICANS MAX BAUCUS, MT
JOHN D. ROCKEFELLER IV, WV
KENT CONRAD, ND
JEFF BINGAMAN, NM
JOHN F. KERRY, MA
BLANCHE L. LINCOLN, AR
RON WYDEN, OR
CHARLES E. SCHUMER, NY
DEBBIE STABENOW, MI
MARIA CANTWELL, WA
BILL NELSON, FL
ROBERT MENENDEZ, NJ
THOMAS CARPER, DE
CHUCK GRASSLEY, IA
ORRIN G. HATCH, UT
OLYMPIA J. SNOWE, ME
JON KYL, AZ
JIM BUNNING, KY
MIKE CRAPO, ID
PAT ROBERTS, KS
JOHN ENSIGN, NV
MIKE ENZI, WY
JOHN CORNYN, TX

ISSUES OF IMPORTANCE TO SMALL BREWERS — EXCISE TAXES

Small brewers are small Main street businesses, typically employing 10 to 50 employees.

Small brewers represent only 4% of the entire U.S. beer market by volume, with 95% of them being very small businesses (producing 15,000 barrels or less per year).

We strongly oppose proposals to increase the excise tax on beer.

• Proposals to increase and equalize the tax among all types of alcohol will tax small brewers at the highest rates because their specialty, gourmet and innovative beers typically have higher alcohol contents.
• Brewers already pay a disproportionately higher share of taxes compared with other products – federal, state and local taxes represent over 40% of the retail price for beer while the same taxes equal nearly 24% of the price for all other purchases.

Higher taxes will worsen the economic recession – resulting in less competitive products, reduced sales and revenues, lost jobs and, for some small brewers, business closures.

• $1 per case excise tax increase will typically cost the consumer at least $1.69 due to successive mark-ups as the case moves from brewer to wholesaler to retailer.
• Many small brewers are struggling to deal with the consequences of the 2008 spike in ingredient and operational costs.

If you want some background on what’s going on with this, here’s where it started with a Senate Finance Committee roundtable in mid-May which then escalated to a written proposal on May 20. This increase is in addition to state excise taxes that breweries have to pay. There’s also additional information at Don’t Tax Our Beer and the Brewers Association’s Excise Tax Resources page.

If you care about the beer you drink and the many small breweries that make it, please take a few minutes out of your day to help keep it affordable and also keep some of them from possibly going out of business. Please reach out to your elected official in the U.S. Senate. They’re supposed to work for you, after all, let them know how you feel.

*



More...

I Did my part just emails and called Senator Snowe (R) Maine she is usually pretty business friendly I told her staffer of my concern, and she will get the message today. I also emailed her with my concern. She is on the finance committee. let hope she and all the others get the message.

I wrote my Senator this morning as well....

I hope Kyl listens to us.

AZ_IPA said:

I wrote my Senator this morning as well....

I hope Kyl listens to us.

Click to expand...

He will, or at least his office will. Got a 10 minute call from Jim Swift of Kyl's office. He says that Kyl will oppose the tax. Send in a letter anyways. Let's prime the pump for any other beer issues.

I got the email too and sent email to the two utah senators...

~Phil

Let see if Tom Carper is listening.

I emailed Senator Binagman (NM) about this. I voiced my "strong opposition" to the proposal.

I emailed my senators in IL and have encouraged all my beer loving friends to as well.

I just wrote Maria Cantwell (WA).

Thanks for the heads-up on this!

I called my senator and asked him not to be in favor of any tax increase.

I sent in my thoughts to Bill Nelson

Here's what I wrote to my Senate-critters:

Sir,

Thank you for your long service to the people of Pennsylvania and the nation. Your work has been often difficult, and it is appreciated. I write to ask you to go to work once more in the interests of your constituents.

The Senate Finance Committee in Washington, DC is currently considering a proposal to increase and equalize the excise tax for alcohol beverages as part of healthcare reform deliberations. This proposal would at least triple the excise tax on beer.

If such a proposal becomes reality, there is no question that many small brewery businesses will suffer, some will close and consumers will face higher prices and diminished choice in the marketplace.

As a member of the beer industry, I oppose in the strongest possible terms raising the federal excise tax on beer because of the serious - possibly disastrous - consequences it would have on small brewers in the Commonwealth of Pennsylvania. Proposals to increase and equalize the tax among all types of alcohol will tax small brewers at the highest rates because our specialty, gourmet and innovative beers typically have higher alcohol contents. Brewers already pay a disproportionately higher share of taxes compared with other products – federal, state and local taxes represent over 40% of the retail price for beer while the same taxes equal nearly 24% of the price for all other purchases.

Moreover, higher taxes will worsen the economic recession, resulting in less competitive products, reduced sales and revenues, lost jobs and for some small brewers business closure. Small brewers are small, Main Street businesses, typically employing 10 to 50 employees. Many small brewers are struggling to deal with the consequences of the 2008 spike in ingredient and operational costs. The imposition of additional taxes will very likely sound the death knell for small businesses in your constituency.

I ask that you contact members of the Senate Finance Committee and register your strong opposition to this proposal moving forward. Jobs and families depend on it.

Sincerely,

R P Davis

Click to expand...

Use it as a template if you like. Swap out "Commonwealth of Pennsylvania" with your state, and if you Senator sits on the committee, urge his opposition instead of asking her to use her influence.

Oh, and don't tell the Senator the Committee is sitting in Washington, DC like I did. Of course they are, Bob, you ******.

Bob

Just petitioned Sen. Jon Kyle here for AZ, I think olllllo is in PHX so I would assume our petitions went to the same place, but keep it up everyone it's the only way the American people have to rise above and overcome anymore!

On a side note wasn't our country founded on less taxes and beer anyway?

Email sent to Menendez of NJ.

Email sent to Chuck Schumer (NY)

Sent in my 2 cents.

E-mail sent to Jim Bunning. If anyone is interested in reading my letter (or using it as a template, as cleverly said above) it is in the below quote:

Senator Bunning,

I am writing to express my strong disapproval for an increase in the federal excise tax on alcoholic beverages, as is being discussed in Congress. My reasons are fourfold:

(1.) Proposals to increase and equalize the tax among all types of alcohol will tax small brewers at the highest rates because specialty, gourmet and innovative beers (the most interesting and delicious!) typically have higher alcohol contents.

(2.) Brewers already pay a disproportionately higher share of taxes compared with other products – federal, state and local taxes represent over 40% of the retail price for beer while the same taxes equal nearly 24% of the price for all other purchases. To tax them even more disproportionately simply because they don't have an outspoken constituency is under-handed.

(3.) Middle class Americans are the largest consumers of craft beers. They will be the segment that pays most for this tax increase. Do we really need another move by Washington that hampers the progress of the middle class, while claiming it's there to help middle class Americans? Robbing Peter to pay Paul ring a bell?

(4.) I have been working to build the contacts and knowledge necessary to open a microbrewery of my own (which would most likely be in Kentucky, I might add), producing craft beers, and a tax increase that would damage that segment of the industry might make the business venture less worthwhile.

Thank you for taking the time to read this: Your position in the Senate Finance Committee gives you a unique ability to affect change in this situation. I'm confident you would be against this proposed tax hike anyway, but wanted to remind you that there are people behind you, myself included. Please respond at your earliest convenience.

Click to expand...

Sent an e-mail to Washington's Maria Cantwell today.

Keep them flowing.

E-mailed my Cali senators!

Email sent to Debbie Stabenow (MI) and thread posted in the Michigan Mashers page.

Email sent to John Cornyn (TX)

I just emailed both Tennessee senators and asked them to express my (our) concerns to their colleagues on the finance committee.

emailed Chuck in NY.

Interesting to see that this is being proposed in the US, we've got similar legislation being debated here, under the pretence that excise doesn't even come close to the social expenses of drinking in NZ. The counter argument being that craft brewerys don't contribute to binge drinking, and that a one-size-fits-all tax is unfair. Keep fighting the good fight people!

Emailed Sen. Cornyn (TX)

Fired in my email to the ranking member of the committee. Not that there's any chance Orrin Hatch will favor anything relating to beer or the brewing industry, especially with the LDS church's strong stake in Coors...

I have to imagine that the large commercial brewers, distillers, and soft-drink manufacturers are all up in arms about the proposed changes as much as, if not more so, than craft brewers. I also suspect BUD and KO pull quite a bit of weight on capitol hill. So, hopefully this proposal will be subsequently shot down.

That's not to say that I haven't contacted my local representatives about this.

weirdboy said:

I also suspect BUD and KO pull quite a bit of weight on capitol hill.

Click to expand...

I am all but sure that AB-InBev retains the best, highest priced suits on K Street.

I just emailed Senator Carper from Delaware.

What makes you think the big brew corporations aren't the ones PUSHING this additional tax? I mean, I understand it sounds silly, but what better way to remove the competition they are finding in smaller, higher alcohol-content, microbreweries? 4.5% was chosen for a reason, and it bet it lies in the fact that most pisswater macro brews are just under that. If you can't beat them, have them taxed into extinction.

I

Emailed Jim Bunning in KY.

BrewN00b said:

What makes you think the big brew corporations aren't the ones PUSHING this additional tax? I mean, I understand it sounds silly, but what better way to remove the competition they are finding in smaller, higher alcohol-content, microbreweries? 4.5% was chosen for a reason, and it bet it lies in the fact that most pisswater macro brews are just under that. If you can't beat them, have them taxed into extinction.

I

Click to expand...

+1 on that. This is exactly what I put in my letter to my Senators (who are unfortunately not on the SFC), but I made it very clear that I felt that was what was being done by InBev lobbyists. I also proposed that if the government felt they NEEDED to pass an excise tax of this nature to reach their goals, that it should be based on volume produced so the tax is more evenly distributed and doesn't hurt the small businesses.

Just emailed Maria Cantwell of Washington.

another email to Maria Cantwell of Washington