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Dear
Beer Enthusiast,
Small
brewers are facing an imminent and extremely serious threat to their
businesses. The consequences of remaining silent have the very real
potential of reducing your choice of beer and dramatically increasing the
price of any beer that you purchase.
The
Senate Finance Committee in Washington, DC is currently considering a
proposal to increase and equalize the excise tax for alcohol beverages as
part of healthcare reform deliberations. This proposal would triple the
excise tax for 4.5% ABV beer and impose even higher excise tax rates for
higher ABV beers.
If
such a proposal becomes reality, there is no question that many small
brewery businesses will suffer, some will close and consumers will face
higher prices and diminished choice in the marketplace.
The Brewers Association brewery members and leadership have been actively
engaged in building the case against an excise tax increase, recently
submitting a letter to the
Committee outlining our opposition.
We need you to speak
out now. Today or tomorrow at the latest.
If you live in the following states it is most urgent that you contact your
Senator who is on the Senate Finance Committee:
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Arizona
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Nevada
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Arkansas
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New
Jersey
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Delaware
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New
Mexico
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Florida
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New
York
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Idaho
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North
Dakota
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Iowa
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Oregon
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Kansas
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Texas
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Kentucky
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Utah
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Maine
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Washington
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Massachusetts
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West
Virginia
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Michigan
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Wyoming
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Montana
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If
your Senators are not members of that committee, ask them to contact their
Finance Committee colleagues and express their opposition to this proposal
moving forward.
Your ask of them is
simple:
Oppose the Tax
Increase. Let them know that you oppose, in the strongest
possible terms, raising the federal excise tax on beer because of the
serious consequences it would have on small brewers and the craft beer they
brew. Additional talking points appear below.
Once again: If
one of your Senators sits on the Senate Finance Committee (roster of
members below), urge them to oppose this proposal in committee
deliberations.
If your Senators are
not members of that committee, ask them to contact their Finance Committee
colleagues and express their opposition to this proposal moving forward.
Take
Action
- Call and/or email your Senators’ Washington or district offices
and make your personal case against this massive excise tax increase.
As always, thanks for your support.
Charlie Papazian
President, Brewers Association
Senate
Finance Committee Members:
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Baucus,
Max (MT), Chairman
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Bingaman,
Jeff (NM)
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Bunning,
Jim (KY)
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Cantwell,
Maria (WA)
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Carper,
Thomas R. (DE)
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Conrad,
Kent (ND)
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Cornyn,
John (TX)
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Crapo,
Mike (ID)
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Ensign,
John (NV)
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Enzi,
Michael B. (WY)
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Grassley,
Chuck (IA), Ranking
Member
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Hatch,
Orrin G. (UT)
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Kerry,
John F. (MA)
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Kyl,
Jon (AZ)
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Lincoln,
Blanche L. (AR)
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Menendez,
Robert (NJ)
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Nelson,
Bill (FL)
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Roberts,
Pat (KS)
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Rockefeller,
John D. (WV)
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Schumer,
Charles E. (NY)
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Snowe,
Olympia J. (ME)
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Stabenow,
Debbie (MI)
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Wyden,
Ron (OR)
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ISSUES OF IMPORTANCE TO SMALL
BREWERS EXCISE TAXES
Small
brewers are small Main street businesses, typically employing 10 to 50
employees.
- Small brewers represent only 4% of
the entire U.S. beer market by volume, with 95% of them being very
small businesses (producing 15,000 barrels or less per year).
We
strongly oppose proposals to increase the excise tax on beer.
- Proposals to increase and equalize
the tax among all types of alcohol will tax small brewers at the
highest rates because our specialty, gourmet and innovative beers
typically have higher alcohol contents.
- Brewers already pay a
disproportionately higher share of taxes compared with other products
– federal, state and local taxes represent over 40% of the
retail price for beer while the same taxes equal nearly 24% of
the price for all other purchases.
Higher
taxes will worsen the economic recession – resulting in less
competitive products, reduced sales and revenues, lost jobs and, for some
small brewers, business closures.
- $1 per case excise tax increase will
typically cost the consumer at least $1.69 due to successive mark-ups
as the case moves from brewer to wholesaler to retailer.
- Many small brewers are struggling to
deal with the consequences of the 2008 spike in ingredient and
operational costs.
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Proposed Increase of Federal Excise Tax a Serious
Threat to
Small Brewers
and Your
Beer Choice –
Contact Your Senators Now
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Crafted and
delivered by Brewers Association's Mail Dog!