CEO DATELINE - Alcoholic beverage makers warn against looming tax hike
CEO DATELINE - Alcoholic beverage makers warn against looming tax hike
- December 14, 2020 |
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Walt Williams
Eight associations representing companies that make beer, wine and spirits say that a looming tax hike could be the final blow for many of their members after a difficult year.
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Congress temporarily lowered federal excise taxes on alcoholic beverages in 2017 as part of the GOP tax overhaul passed that year. The lower rates will expire at beginning of 2021, so the industry is pushing for a law—the Craft Beverage Modernization and Tax Reform Act—that would make the tax reduction permanent.
In a letter to congressional leaders, the eight associations said the legislation is vital after the devastating economic toll the COVID-19 pandemic has taken on many of their members.
"Now, weeks away from a federal excise tax increase, producers fear their businesses will not be able to shoulder another burden after such a challenging year," the letter states.
"Unlike other tax provisions, absent Congressional action, the increase in federal excise taxes will have an immediate impact on the industries. Some producers will be paying the higher rates as soon as January 15," the groups added.
The leaders of the Beer Institute, Brewers Association, Wine Institute, WineAmerica, Distilled Spirits Council, American Craft Spirits Association, American Cider Association and American Mead Makers Association signed the letter.
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