(Boulder, CO) – The Brewers Association recently provided an update regarding the much-debated giant tax reform bill, specifically the portion that provides tax relief to brewers. More below as taken from The Brewers Association website…
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On Friday, December 1, the United States Senate passed the Tax Cut and Jobs Act. This legislation includes a two-year version of the Craft Beverage Modernization and Tax Reform Act (CBMTRA), which will lower the federal excise tax for breweries, wineries and distilled spirits producers.
This bipartisan legislation — with 54 Senate co-sponsors and 299 House co-sponsors — is a large step forward for America’s small brewers, located in almost every congressional district in the nation.
The bill, if enacted, would cut the federal excise tax rate in half, going from $7.00/ BBL to $3.50/ BBL for barrelage under 60,000 BBLs, for domestic breweries producing fewer than two million barrels a year. (BeerPulse Note: For domestic brewers producing between two and six million barrels, the federal excise tax will go from $18.00/BBL to $16.00/BBL. For domestic brewers producing in excess of six million barrels, the federal excise tax will remain unchanged at $18.00/BBL).
The next step is for the House and Senate to vote for the bill to go to conference committee, a group of bipartisan representatives and senators, who will reconcile the differences in the legislation that passed both chambers. The House is expected to vote to go to committee today, and the Senate sometime this week.
There is still work to be done, but we are one step closer to getting CBMTRA passed in the 115th Congress.
For nearly a decade, the Brewers Association (BA) has worked diligently on behalf of its members to lower federal excise taxes. We are very appreciative of the support CBMTRA has received to date and will be working to ensure that the legislation is passed in the 115th Congress.
Please keep in mind that the BA and its members have had no input on the larger political issues in play on the tax reform bill. The BA, as an institution dedicated to advancing the interests of small and independent brewers, has taken a position only on the provisions affecting our members, such as CBMTRA.
Onward,
Bob Pease
President & CEO
It seems to me that in only focusing on the CBMTRA that is now a part of this new and very recent tax “cut” bill, you appear to be misleading in the “bipartisan” part of your piece. Sure, CBMTRA might have bipartisan support, but, as far as I can tell, the bill in total is not being supported by the Democrats in the slightest. And even if one or two did end up throwing in their vote, I would not call that true bipartisanship.
My concern for seeming misleading here is that by only focusing on your piece of the pie, you are attempting to mask the greater portion of this bill that is in contention and very controversial. Appearing to seek support of drinkers and those in the industry that might take a step or two back from supporting what the majority of this bill is trying to accomplish.
If you want to give validity to the portion of the bill concerning our industry, I would dissociate from the Tax Cut and Jobs Act a bit. Let readers know that this portion is, in actuality, supported by both sides. The CBMTRA seems a silver lining in all this mess and should be viewed as such. If the current bill does fail, I wouldn’t want it to get thrown out with the rest. See – Baby and Bathwater metaphor (or at least baby’s rattle).
Cheers!
With all due respect, the larger ramifications and controversy around the rest of the 350+ page bill are way too much for what this site does. Just wanted to inform people that there are major ramifications for brewers that were worth noting, at least in brief. Cheers!