Craft Beverage Modernization And Tax Reform Act Introduced
The Craft Beverage Modernization and Tax Reform Act, was introduced in the U.S. Senate on June 11 by Senator Ron Wyden (D-OR).
The legislation incorporates provisions of the Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act), excise tax recalibration legislation supported by the Brewers Association in the past several Congresses.
The Bill would reduce excise taxes, and regulations on breweries, cideries, wineries, and distilleries – and would likely make alcohol even cheaper in the United States, jeopardising public health, social well-being and economic prosperity even more.
Tax provisions for breweries include:
- Any domestic brewery that produces less than 2 million barrels a year would pay $3.50/barrel on the first 60,000 barrels and $16 barrel on anything above 60,000-2 million barrels.
- Any domestic brewery that produces more than 2 million barrels a year would pay $16/barrel on their first 6 million barrels.
- All importers would pay $16/barrel on the first barrel they import through 6 million barrels. Those importers that import more than 2 million barrels would pay $18/barrel on any barrel over 6 million.
- Other provisions would simplify beer formulation and label approvals, reduce filing and bonding requirements, remove restrictions on transfers of beer and repeal unnecessary inventory restrictions.
Passing of the bill(s) would be another setback for public health and socio-economic progress in the United States. Over the last decades alcohol has de facto become cheaper, due to inflation. If anything, alcohol taxation ought to increase so that alcohol prices would increase.
Alcohol harm costs the US economy §224 billion every year – much more than the alcohol trade combines contributes to the GDP.