Tax Cuts For Booze Are Part of Senate Tax Plan ... For Now

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For several years now, alcohol producers around the country have been urging Congress to pass the Craft Beverage Modernization and Tax Reform Act, which would lower federal excise taxes on booze. Despite bipartisan support, the bill has never advanced. It appears that at least a temporary breakthrough could be on the horizon, however, as the Senate has included the booze tax reform as part of its larger tax plan. CNN reports:

"Senate Republicans are proposing significant excise tax reductions for wine, liquor and beer -- including one that slashes in half the rate for craft brewers.

But the party could be short lived. Even if it passes, the proposed tax reductions are set to expire after two years.

'We're gratified to have achieved this and we're hoping to build on it in the future,' said Mark Gorman, senior vice president for the Distilled Spirits Council, the industry group for the $65 billion liquor industry.

He said that he hopes to extend the reductions beyond two years. 'It's terrific recognition that distilled spirits have been overtaxed for a long time and this would the first distilled spirits tax reduction since the Civil War,' he said. 

For beer, which is currently taxed at $18 per barrel, the proposal would lower the tax rate to $16 per barrel for the first two million barrels produced or imported, and after that it would go back up to $18..."

Read the rest here.