The impact on your alcohol could be huge.
from Bob Pease and Jim McGreevy—presidents and CEOs of the trade groups the Brewers Association and The Beer Institute, respectively—they suggest that 99 percent of U.S. breweries would see their excise taxes double. "For the more than 2,000 new brewers who opened their doors after the lower federal excise tax was enacted, this tax increase will be a huge financial burden," they wrote.
Distilleries would have it even worse, with taxes rates set to jump from $2.70 to $13.50 per proof gallon for the first 100,000 proof gallons—a potential million dollars in additional tax next year. And, many would have to make their first payments as soon as January 15. "We're all a little dizzy," Margie Lehrman, the chief executive of the American Craft Spirits Association, told the paper. "The congressional leadership seems stuck because of issues much larger than us.
What's equally frustrating is that, by many metrics, these bills appear to be working. Pease and McGreevy suggest that the cuts have "created more than 150,000 new jobs in the craft brewing industry alone." And yet, if the cuts expire, it will come at a time when growth in the craft beer industry has already been slowing: a potential double-whammy.
For drinkers, the possible negative impact is clear: potentially higher prices, especially from smaller and newer producers who may have a harder time dealing with a tax increase—and that's assuming these producers are able to simply stay in business. You'd think with all the negativity in Washington right now, Congress would want to get this one passed just to make everyone happy.
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