Federal Excise Tax on Brewers

May 23, 2009

This email was sent to the Craft Beer in Michigan group sometime this week. It originated from Charlie Papazian. It gives you information on a fight to prevent a Federal Excise Tax on brewers. Please if you have time read it.

Some of you are aware of the headline discussions in Washington DC this week and last week regarding proposals to dramatically increase Federal Excise Tax on brewers and other alcohol beverage industries.  Brewers Association staff and those who are working on behalf of the Brewers Association in Washington, DC are in daily and regular communications on how to best represent small brewers concerns in these very critical discussions.  Dramatic excise tax increases would be harmful to both small brewery businesses and to the existing American beer culture of enjoyment and responsibility.

 

In order to gain strategic ground before any Federal Excise Tax increase was proposed, the Brewers Association earlier this year teamed up with the Beer Institute to help introduce two bills advocating a reduction in Federal Excise Tax. These two bills are House Bill H.R. 836 and Senate Bill S.1058.  They are helpful as both a defense and as a proactive initiative.  H.R. 836 has 178 co-sponsors.  S.1058 introduced last week has an initial 7 co-sponsors in the Senate.  These two bills can help us push back on proposals to dramatically increase excise taxes on small brewers and the industry as a whole.

 

Earlier this year you were asked by BA to call your Representatives and ask them to sign on as co-sponsor of H.R. 836.  Soon you will be receiving information asking you to call your Senator to become a co-sponsor of S. 1058.  Faxing, emailing or calling your congressperson’ s office in Washington , DC or at offices in your state WILL BE CRITICAL to help avoid tax increases on your business.  If you need more information contact Pete@brewersassocia tion.org

 

In addition to the threat of Federal Excise Tax increases, the Administration’ s new budget outline proposes the establishment of annual user fees to fund TTB’s agency budget, which in effect would be an additional tax on brewers and other related industries.

 

Brewers Association is involved in expressing concerns on behalf of small brewers on these two legislative matters.  You may hear from us in the near future regarding actions which you can be involved in on these matters too.

 

The Brewers Association feels it is of utmost importance during these critical times that the beer industry presents a united and coordinated effort on the federal level.  This is why we have teamed with the Beer Institute to help us represent our constituencies.  If you are involved or are considering being involved in any other Federal initiatives that would be relevant to American small brewers, please let us know about them.

 

Contact:

Paul Gatza: paul@brewersassocia tion.org

Pete Johnson: pete@brewersassocia tion.org

Or Charlie Papazian: charlie@brewersasso ciation.org  

 

If you would like to express your thoughts on a board level please contact Government Affairs Committee Chairman, Nick Matt at nickmatt@saranac. com

 

Note:  On June 2, the Brewers Association is hosting a “Celebration of American Craft Beer” reception for congressional representatives and their staff on Capitol Hill.  We will recognize the two co-chairs of the House Small Brewers Caucus, Peter DeFazio (OR) and Denny Rehberg (MT).  We have about 12 BA member brewers who have expressed to us that they will attend and help represent American small brewers at this reception.  Many of them will take the time to meet with their Senators and Representatives before the reception and discuss current matters of concern.

   

Brewers Association staff and brewery members will also attend and make presentations at the House Small Brewers Caucus’ meeting preceding the reception.

 

Thank you for your involvement as a member of the Brewers Association,

 

Charlie Papazian, President

Brewers Association

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