Beer Institute: Most Expensive Ingredient in Beer is Taxes

Discussion in 'Beer News' started by yemenmocha, Sep 28, 2012.

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  1. yemenmocha

    yemenmocha Grand Pooh-Bah (4,092) Jun 18, 2002 Arizona
    Pooh-Bah Society

    http://www.cnbc.com/id/49197369

    Seems like a lot of skeptical people on this topic when it comes up in the forums. Glad it is in the news and receiving some attention.
     
  2. sjstraub

    sjstraub Initiate (0) Nov 13, 2006 Wisconsin
    Trader

    As well it should be. It's an unhealthy luxury good. Beer, cigarettes, liquor, candy, soda, etc should all be taxed to high hell. Think about it this way, would you lower the beer tax to increase the tax on milk? Nope. That would be insanity.
     
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  3. herrburgess

    herrburgess Grand Pooh-Bah (3,053) Nov 4, 2009 South Carolina
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    It's the first thing you hear when you ask how German beer can remain so inexpensive: they tax it at a far lower rate than the (puritanical) U.S.A.
     
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  4. UCLABrewN84

    UCLABrewN84 Initiate (0) Mar 18, 2010 California

  5. luwak

    luwak Initiate (0) Mar 2, 2010 Arizona

    WORD. I'd gladly pay more taxes on my unneeded items like beer to free up sources for incentives for those who produce needed goods.
     
    RyanMM likes this.
  6. emannths

    emannths Initiate (0) Sep 21, 2007 Massachusetts

    The excise tax applied to beer is minuscule. The analysis includes sales taxes and business taxes which apply to all business, whether they sell beer or teddy bears, and amounts to at least 75% of the taxes in question.

    I'd think the Beer Institute's lobbying dollars would be more effectively spent on reducing the red tape and bureaucracy that do relatively little to protect the public, yet are the cause of massive headaches for people in the industry and a reduction of consumer choice. But of course, once you're on the right side of the red tape, you've got a lot less incentive to lobby against it.

    Oh, how about the bomber tax? Does that count? Their analysis assumes $0.09/oz, or about $2/bomber. So if you include the bomber tax that makes the bottle $8, then taxes are a HUGE part of the equation. :wink:
     
  7. Bond111

    Bond111 Zealot (696) Feb 14, 2011 Minnesota
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    Here in Rochester Minnesota, tax on beer/booze is 9.875%. I understand cigarettes because they are dumb, but the nectar of the gods?!?
     
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  8. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    For some examples re: emannths point, on a 12 oz. bottle of beer from a smaller "craft" brewery (under 60,000 bbl./yr), the Federal Excise Tax accounts for 2¢ (and that's rounded up, based on the reduced rate of $7/bbl.) of the price.

    State beer excise beer taxes vary quite a bit but in most cases it still only adds a few cents per bottle - Alaska's is highest (over a $1/gallon) and costs around a dime per 12 ounce.
     
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  9. dgilks

    dgilks Initiate (0) Jul 14, 2008 Australia

    Alcohol taxes in the US are so obscenely low it isn't funny. We pay close to $1 in excise on a 12oz bottle here in Australia compared to your 2c.
     
  10. BirdsandHops

    BirdsandHops Pooh-Bah (2,825) Apr 14, 2008 Oregon
    Pooh-Bah Society

    I don't really mind since those roads that are used to get both the beer and myself to the stores, bars, and breweries won't pay for themselves.
     
  11. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    Well, now, to be fair that 2¢/12 oz. bottle figure is only for breweries under 60k bbl/yr- over that, it jumps up to a nickel a bottle/can! :grimacing:
     
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  12. DonDirkA

    DonDirkA Initiate (0) Dec 14, 2011 Arizona

    I would increase the tax on milk to lower the beer tax. But I'm lactose intolerant, so I don't really give a damn :slight_smile:
     
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  13. DonDirkA

    DonDirkA Initiate (0) Dec 14, 2011 Arizona

    I lived in Flagstaff, AZ and I am from Tucson, AZ. AZ state sales tax is now 9.1% on anything. Flagstaff tax on booze, restaurants and hotels is something like 10.8% if I remember correctly. So my $20 bomber would cost over $2 extra :slight_frown:
     
  14. dauss

    dauss Pooh-Bah (1,730) Aug 9, 2003 Colorado
    Pooh-Bah Society

    Meh. The tax rate here is comparatively low. It's not to say that it isn't high, but we have other serious problems leftover from Prohibition that should be fixed first(some are applicable to some states, some aren't).

    Why am I not able to buy beer at the brewery for on premise consumption?
    Why can't breweries self distribute?
    Why can't I buy beer after certain time?
    Why can't I buy more than pints?
    Why can't a brewery sell wholesale if they sell food?
    If a brewpub sells food, why is there a minimum % of sales that has to come from food?

    So on and so forth....
     
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  15. rlcoffey

    rlcoffey Initiate (0) Apr 20, 2004 Kentucky

    Disagree. Legal products should all be taxed exactly the same. And more products should be legal.
     
  16. rlcoffey

    rlcoffey Initiate (0) Apr 20, 2004 Kentucky

    Not just state excise taxes either. KY has a relatively low excise tax rate, but an 11% distributor tax on alcohol. You see the charts of excise tax by state and it shows KY as one of the lowest, but that is BS, because of the distributor tax.
     
  17. rlcoffey

    rlcoffey Initiate (0) Apr 20, 2004 Kentucky

    That pdf is wrong. KY added the sales tax for off-premise sales a few years back, Im pretty sure BEFORE that came out, but close. The chose was between bumping up the 11% wholesale tax a few points or adding the sales tax in. The legislature chose the sales tax because customers were used to paying it, so wouldnt really notice.

    Edit: That KY change went in April 1, 2009, the pdf is dated Jan 1, 2010.
     
  18. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    My comment above, quoting and elaborating on emmanths', concerned only Federal and State beer excise taxes- taxes unique to beer, unlike general sales taxes (that consumers pay), property taxes, payroll taxes that both breweries and other business pay, or wholesalers taxes.

    I guess you can always contact that website - Federation of Tax Administrators- contact page
     
  19. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    Taxes - a convenient thing that EVERYBODY can complain about since EVERYBODY thinks they pay too much whether they are rich, poor, or somewhere in the middle. Now I dislike taxes as much as the next guy but even if taxes were lowered across the board, there would still be people who think they pay too much. And besides, statistics can be presented in many ways, or misrepresented entirely. Just like opinion polls, which I really think are misleading.
     
  20. rlcoffey

    rlcoffey Initiate (0) Apr 20, 2004 Kentucky

    They have been informed. But you shouldnt rely on such crappy out-of-date info. :slight_smile:
     
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