The Economist "Taxes: A Brewing Fight"

You guys just don't know what beer tax is. You are amazingly fortunate in this respect.
A pint in a pub here has between $1.50 and $2.50 going to the taxman depending on strength and price.

 

And you don't know what a tax is - try coming here

 

The price of craft beer would almost certainly go up if the federal excise tax break was eliminated. The additional cost would either cut into profits or be passed on to the consumer. The amount of increase would depend on whether they think they can maintain (and preferably increase) their market share.

Craft beer is already relatively expensive for the average consumer. Any excise tax the Fed collects from these small brewers would have virtually no effect on its revenue. The only question is from a policy perspective as to whether it is fair to big brewers that they're taxed when small brewers aren't. I don't think you'll find too many here claiming that it isn't.

 

Just for the record, the taxman you speak of is NOT me.

 

Nice try, Paul McCartney.

 

No one is talking about removing the "break" for smaller producers.

Although I will point out that your question is saying, "I wonder if their costs increasing will lead to increased 6-pack prices." Which seems like a silly question..

 

Ahem... George.

Nice little article though.

 

Maybe I'm blind (or missing a 2nd page to the article) but I have re-read the article multiple times and I don't see that anywhere.

You're right I'm sorry that was uncalled for. Anyway, The Economist is a great. Thank you for the article, Hop_King.

 

I am shame.

 

where's jesskidden when we need him?

 

The difference between the reduced rate and the full rate is $0.03/12oz. So if small brewers have to pay the full rate, expect the price of a 6pk go increase by $0.18. If it increases any more than that, someone is making extra profit--don't blame the government for that.

 

There are no current suggestions or proposals to raise the Federal Excise Tax on beer, or to do away with the "small [under 2m bbl/yr] brewers" Reduced Rate. This is the current FET:

Here's a good, brief description of two competing bills - both of which propose to reduce the FET for some/all breweries - the Brewers Association's Small BREW Act and the Beer Institute's BEER Act:

Above borrowed from "Brewbound".

Although the BI is generally considered the "Big Brewers (and Importers)" and the B.A. the "Craft brewers", many breweries belong to both groups - including A-B, M-C, Boston Beer Co., Sierra Nevada, Brooklyn, Anchor, etc...

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I have. I agree.