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

[BobOscarBob]

Jim DeMint and Lindsey Graham just got emails...

 

[Rhoobarb]

Just contacted senator Durbin.

 

[the_Roqk]

Senator Nelson just got his email for the opposition.

 

[ohiobrewtus]

I just shipped off 3 emails.

 

[conpewter]

Just contacted senator Durbin.

Same here, and my Representative.

 

[weirdboy]

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.

Did anyone here actually read the damn proposal?

They are proposing a flat tax rate per proof gallon of all alcohol including distilled spirits, wine, and beer. The 4.5% is just a metric they used to estimate the current tax rate per proof gallon.

They also have proactively addressed small brewers' concerns by proposing a threshold of production, below which a lower tax rate would be used:

In a manner similar to present law, for domestic brewers producing less than two million barrels of beer during the calendar year, the proposal imposes a reduced rate of tax on the first 60,000 barrels of beer removed each year.

It really bothers me when I see people spreading FUD without actually checking the facts.


For reference Here's a PDF of the proposal

 

[Socrates_the_Dog]

Just sent an email to Senator Lincoln (AR).

 

[AstroBrew]

Email sent to Sen. John Cornyn (TX), member of Senate Finance Com. I feel engaged in the democratic process.

BTW, weirdboy makes a good point, the proposal does mention a tax credit for the first 60,000 barrels produced by a brewery that produces less than 2 million barrels a year. The same sort of structure is used for the present beer excise tax. It's not clear if the excise tax on that first 60,000 barrels would remain the same as it is now, or would still go up, just by a smaller amount.

 

[Beerrific]

Hmm....got a response from my Senator (aide): "Thank you for contacting me regarding a possible tax on soft drinks. It is good to hear from you."

UGH.

But, he is opposed to an increase tax on soft drinks, so that is good to hear.

 

[beerkrump]

Response I got from Lamar Alexander

Thanks for getting in touch with me and letting me know what's on your mind.



I'm grateful you took the time to send me information on proposed excise taxes on high alcohol beers. These are serious times, and there are many important issues to discuss. I'm always glad to take a look at additional information that could help me as I review this issue, and I'll be sure to keep your comments in mind.

Sincerely,



Lamar

 

[conpewter]

I'm not for raising any taxes, we don't need to be taxed more, we need to spend less and spend more wisely, even if there are provisions to tax the smaller breweries less than the large

 

[user 30639]

Thanks for the heads up, I will email Senator Cornyn tomorrow morning.

 

[olllllo]

What makes you think the big brew corporations aren't the ones PUSHING this additional tax?

Well there is this.

Chicago Business notes, accurately, that any federal tax bump would give Anheuser-Busch InBev the opportunity to slash costs. As a condition to Belgium-based InBev’s acquisition of Anheuser-Busch last year, it agreed not to close any of its 12 U.S. breweries - as long as there were no increased federal or state excise taxes or “other unforeseen extraordinary events” that hurt Anheuser-Busch’s business.

Source: Higher beer taxes “on life support,” says key senator. Can brewers relax? | Lager Heads | STLtoday

InBev do love to wield the ax.

 

[GearBeer]

Huh... so they're going to move their rice beer production closer to the rice fields? That sounds typical of American manufacturing.

I shot an email off to Debbie Stabenow yesterday. I'm considering calling her, too.

 

[justinh85]

Heehee...the gov't makes me laugh. They tell the people to do more with less money, but when times get tight for the gov't, what do ya do? Raise taxes! So why can't we tell them to do more with less...after all: by the people, of the people, for the people right? Everybody loves bloated gov't.....

 

[rico567]

I'm not for raising any taxes, we don't need to be taxed more, we need to spend less and spend more wisely, even if there are provisions to tax the smaller breweries less than the large

AGREED. Totally. Despite the apparent conviction of those in control inside the Beltway, we cannot spend our way out of this recession....or to the New Jerusalem once it's over.

 

[olllllo]

This isn't a political thread. Topic is fighting the excise tax.

 

[pompeiisneaks]

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

~Phil

 

[Arkador]

we should all gather in DC and pour Keg after Keg of Busch beer in the Potomic river if they are truly supporting this....

 

[BeerFan21]

I sent an email to Bill Nelson (FL). I'm a big fan of Orlando Brewing Co, but down in SWFL there are no local breweries, just a few decent beer bars. The three tier system already limits too many quality beers from making it to my area, we don't need another hurdle. I fear that if this tax increase proposal does go through - it will prevent other potential breweries from starting up as well.

Cheers

 

[RayInUT]

Does anyone think a senator from Utah would really be against putting yet another tax on beer? We pay more for beer in Utah than any other state if it is over 3.2%. We're screwed here...

 

[BA_from_GA]

damn washington. i swear they piss me off more and more every day... all of them.

 

[Dwain]

Just got this response in today. It's a long read, so I'll just paste in the jist of it. This is from John Cornyn, Texas Senator - Dwain

As you know, the Senate Finance Committee has considered an alcoholic beverage excise tax as a possible way to pay for a government takeover of our health care system. While no legislation has been introduced that would implement this tax, I remain concerned about any proposal that increases taxes on hard-working Americans. Taxpayers already work almost four months out of the year to pay for the operations of government; this is more than they work to pay for transportation, food, and clothing combined. Hardworking Texans deserve to keep more of their own money to spend, save, and invest how they see fit. Congress should instead work to keep taxes low and reduce wasteful spending. As a member of the Senate Finance Committee, I will oppose any efforts to raise taxes on alcoholic beverages. I firmly believe Congress should not rely on tax increases to fund government initiatives.

 

[ramz7887]

. 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!

Thats a good point.

 

[ramz7887]

we should all gather in DC and pour Keg after Keg of Busch beer in the Potomic river if they are truly supporting this....

why do that keep making your own beer and save money/taxes. :rockin:
When you do buy get craft beer and boycott the big three. Its sad though that this will just hurt developing craftbrewries and new business. I'm really surprised though that people don't at least try and make their own beer since it isn't that difficult. I'm always amazed when I tell people I make my own beer/wine and they look at me like I just turned lead into gold I wonder what the numbers are on how many people break into home brewing each year.

 

[schweaty]

I may have been a day late and a dollar short but I just e-mailed my senator. They may take our lives but they will never take.... OUR BEER!!!!

 

[murphyslaw]

I wish I had a senator to email. Almost had a congressman but that bill died a few weeks ago. So much for "No taxation without representation"

 

[murphyslaw]

Just got this response in today. It's a long read, so I'll just paste in the jist of it. This is from John Cornyn, Texas Senator - Dwain

haha, it looks like the first sentence was tailored to your email, and the rest of the paragraph is a typical response to all tax inquiries.

 

[Dwain]

Really, the next to the last sentenced is the only one I care about. But yeah, it does read alot like a form letter - Dwain

As a member of the Senate Finance Committee, I will oppose any efforts to raise taxes on alcoholic beverages

 

[BobOscarBob]

I guess he's been busy - but got this from Joe Wilson (R, SC):

Dear Friend,

Thank you for your recent correspondence regarding the House Small Brewers Caucus. I appreciate your taking the time to write.

I understand your concerns and welcome your interest in this matter. I am pleased to report that I have joined the House Small Brewers Caucus and look forward to working with other Members of Congress in conjunction with the craft brewing community to bring awareness to the opportunities and activities associated with small breweries. Please be assured that I will keep your thoughts in mind in the 111th Congress.

 

[Synovia]

Thats a good point.

If you really think no binge drinking occurs with craft brew, I've got a bridge to sell you.

I drank a 6 pack of harpoon IPA during my last brew. Plenty of craft breweries offer reasonably priced summer and lighter styles. Goose Island's kolsch is really cheap around here.