Alcohol Producers Push To Make Federal Tax Relief Permanent

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As part of the tax cut legislation signed by Congress and the President last year, federal excise taxes on beer, wine, and spirits were cut for the first time in decades. (R Street's Kevin Kosar and Jarrett Dieterle analyzed the details of these alcohol tax cuts in this R Sheet primer). The excise tax cuts, however, were only implemented for a two-year period. According to The Hill, alcohol producers are now pushing Congress to make them permanent:

The alcohol industry is pressing Congress to make permanent the excise tax relief it received under the Republican tax law.

The measure President Trump signed in December reduces excise tax burdens on distillers, brewers and vintners for two years, and industry groups are hoping that these changes can last for a longer period of time. Industry groups argue that the tax relief is particularly beneficial to smaller producers and is helping businesses make new investments and hire more workers.

It’s unclear what the vehicle would be for extending the cuts, but groups are optimistic that an extension will happen because there has been bipartisan support for lowering the excise tax burdens...

Read more here.