More than half of U.S. Representatives support slashing beer taxes
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In the midst of a rough summer, the beer industry just posted a victory. Trade groups representing brewers big and small have cajoled over half of the legislators in the House of Representatives to sign onto HR 836, aka the “Brewers Excise and Economic Relief Act of 2009.” Beer Business Daily explains the significance:
The bill would reduce federal beer excise taxes to pre-1991 levels, when they were doubled. The bill seeks to reduce big brewer taxes from $18 a barrel to $9 a barrel, and rollback the small brewer tax break on the first 50,000 barrels from $7 to $3.50 a barrel.
“This is a pretty big deal,” Beer Institute president Jeff Becker told Beer Business Daily.
Brewers Association chief Charlie Papazian, who works with smaller breweries, called the support a “significant achievement.” Papazian said the association had been particularly effective in getting its members to tell the story of “small business challenges and achievements as local breweries contributing to America’s economy.”
But we need a dose of reality. “A tax rollback bill is likely a hard sell in this environment,” wrote Harry Schuhmacher, editor of Beer Business Daily. It’s unlikely that the rollback will actually be passed, especially with the federal government looking for more money - not less, according to Beer Marketer’s Insights.
Even if the bill doesn’t actually become law, here’s the key: “It will be more difficult to raise beer taxes when a majority of the House has signed a bill to reduce them,” According to Beer Business Daily. Higher beer taxes had been a major fear of the beer industry as Congress debated ways to pay for a massive reorganization of the nation’s health care systems. This weekend’s developments are insurance for nervous brewers.
Or, in Becker’s words: “Having a good offense is the best defense.”
(2 votes, average: 5 out of 5)
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Jeremiah McWilliams is a native Virginian who came to the Post-Dispatch in early 2007 to cover beer and other consumer products. He previously covered manufacturing for the Virginian-Pilot newspaper in Norfolk, Va. He is a graduate of Washington and Lee University. 
It would be great if taxes on anything were rolled back, but I don’t see it happening. If it passes in the house, it will still have to pass in the senate, and with Obama handing out money to private companies like Halloween candy, there’s no way he’s signing any legislation to cut taxes.
Democrats don’t cut taxes. The last I checked, Democrats had huge leads in the House and Senate and a big ear guy in the White House. So quit dreaming about cutting beer taxes or any other tax.
Please roll back my taxes 50% while your at it, I did’nt get my bail out or stimulas money
The Congress should increase alcohol taxes period and cut back on licensing in order to stem the tide drunkeness that prevades this nation. We should either tax alcohol out of its hole or stop issuing licenses. Over 100,000 Americans die each year due to alcohol. There are hundreds of thousands of people in prison right now for crimes they committed while drunk. The alcohol industry knows that at least 16 million Americans have a problem with alcohol. This leads to poverty, jail, broken homes, violence, theft, poor general health, dead end jobs, lack of education, and homelessness for millions of Americans. The taxes should not be lowered in order to sell more of this poison. See these folks know that they are going to cause these problems yet everyday they continue to menace the American people. I say bring back prohibition.
Mullarky, for the 16 million people that can’t control themselves, there are over 285 million people that don’t have a problem. Punishing and limiting the majority of society to protect the idiot minority is exactly what big brother government should not be doing. If you wish to live in a society where the government tells every person what is or isn’t good or bad for them, feel free to move to China. There are hundreds of thousands of people who have committed crimes while not intoxicated, as well.
But thanks for visiting the BEER BLOG. I hope your hit and posts help out the statistics for the BEER BLOG, keeping the BEER BLOG up and running! Keep coming back!
Bravo b and a bowl of sour raspberries to Mullarkey. Why is it that liberal idiots always want to tell everyone else how to live? Let’s raise taxes even higher so we can grow the government to such proportions that they can control every aspect of our lives??? Mullarkey … get a life, or not … I don’t care. Just leave me alone and let me decide how, when, where and how much beer I want to enjoy.
Anyone really believe consumers would benefit by a reduction in beer taxes?
Stupid Liberals!
Areyoukiddingme, I don’t think very many people have delusions that a tax cut would be passed on to consumers. Maybe a few breweries would cut prices to boost sales, but for those that are already meeting or exceeding sales, why lower prices if people are already paying current prices? It would more likely be a windfall to breweries across the nation. Many might simply pocket the profits, but there are MANY craft breweries that have demand way beyond what they can produce, and might use the cash infusion to expand, which in the end would be a benefit to at least their local economy overall.
However, I think the ‘key’ noted in the last paragraph of the article is the important piece of this article. With this many representatives supporting a tax cut on beer, a tax increase on beer is just as unlikely as a tax cut. So at least that’s good news for consumers, because I guarantee a tax increase would be passed on to customers instantly. Of course, they’ll think of something to tax, one way or another.