Friday we celebrate St. Patrick’s Day. Originally started as a feast day in honor of Saint Patrick, the Patron Saint of Ireland, Christians are allowed to loosen their Lenten restrictions on food and alcohol consumption on this day. As a result, many of us who are Irish, as well as those of us who choose to be Irish today, will share a beer with friends and co-workers in celebration of Saint Patrick as well as to Irish culture and history.
A proud beer tradition links the United States and Ireland, but beer is more than a cultural cornerstone: Brewers and beer importers are a powerful economic force in the U.S. as well. There are currently more than 4,000 breweries in the U.S., the most since 1870, and brewers and beer importers are creating diverse jobs, investing in businesses, and generating billions of dollars for the American economy.
However, as impressive as the beer industry’s current contributions are on St. Patrick’s Day and throughout the year, taxes on beer are limiting this industry’s economic potential.
On average, 40 percent of the price for the beer you enjoy on St. Patrick’s Day (and every other day of the year) is going to taxes—making it beer’s most expensive ingredient. Congress established the federal excise tax on beer to help fund the Civil War, and it has never gone away. In fact, it has become a serious weight on the entire beer industry. Brewers, beer importers, and beer industry suppliers agree that the unfair taxes on beer are placing an undue burden on them and preventing the industry from reaching its potential.
The good news is, there is a solution: the Craft Beverage Modernization and Tax Reform Act. The comprehensive bill provides fair and equitable reform for the federal excise tax on beer. If enacted, the Craft Beverage Modernization and Tax Reform Act could provide tax relief to all brewers and beer importers and to every style of beer.
Introduced by Senators Ron Wyden, D-Ore. and Roy Blunt, R-Mo., and Reps. Erik Paulsen, R-Minn., and Ron Kind, D-Wis., in January, the legislation has already garnered 91 bipartisan cosponsors in the House and 23 bipartisan cosponsors in the Senate. All of these members of Congress support a fair tax structure and modernized regulations that will allow the beer industry to continue to innovate, create jobs, and grow the economy.
Today, the beer industry contributes nearly $253 billion in economic output and supports more than 1.75 million U.S. jobs, ranging from agricultural production, can and bottle manufacturing, and retail. These jobs contribute close to $79 billion in wages and benefits to American families each year. If passed, the Craft Beverage Modernization and Tax Reform Act has the potential to generate nearly $130 million in tax relief that could be used to expand production, create more jobs, increase industry innovation, and expand consumer choice.
Whether it is gathering with friends today to celebrate St. Patrick’s Day or celebrating holidays with family later in the year, responsibly enjoying a beer enhances our occasions. The Craft Beverage Modernization and Tax Reform Act is a sensible solution to keep the beer industry strong. We commend the members of Congress who have already demonstrated their support for it, and we hope their colleagues on Capitol Hill will join them in pushing for passage of this critical legislation to give the dynamic beer industry the support it needs and deserves.
So we cheer Saint Patrick, hardworking Americans, and beer—all coming together to make March 17 and other occasions throughout the year memorable and enjoyable. With the help of the Craft Beverage Modernization and Tax Reform Act, the beer you enjoy on a future St. Patrick’s Day will be even more satisfying, because it could come with lower taxes.
Jim McGreevy is President & CEO of the Beer Institute.
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