Well it could, if some US Senators have their way…and it would be hard to complain with that…assuming those cuts make their way to your beer mug.
According to Newsweek, Senator Rob Portman of Ohio has proposed an amendment to the GOP tax reform bill that would lower the so-called ‘sin taxes’ on beer and distilled products produced domestically.
Under the amendment, the current excise tax levied on American beer would be lowered from $18 per barrel to $16 for the first six million barrels produced.
Additionally, brewers who produce less than 2 million barrels of beer a year and are currently taxed at a $7-per-barrel rate for their first 60,000 barrels, would see that rate drop to $3.50.
The taxes on distilled spirits could also drop by 80 percent, (assuming Portman’s amendment survives all the bill’s legislative machinations that can dilute even the best of initiatives.
Less favorable is the fact that Portman’s amendment will have to include a sunset provision so it can be passed as part of the larger tax cut package and lessen its effect on the federal deficit.
An earlier version of the bill, the Craft Beverage Modernization and Tax Reform Act has already received the bipartisan support from 53 co-sponsors and the backing beverage industry leaders such as the Brewer’s Association and the Beer Institute.
As things stand now, taxation on Americas’ favorite beverage accounts for more than 41 percent of the price of every beer… And the hope is that Portman’s amendment will make it to the bill’s final markup and that those excise tax changes will lower the cost of your beer.
Banner image credit: Brewers Association