Beermakers Look to Brew Tax Cuts
Craft Breweries Call for Tax Changes
You’ve probably seen them popping up over the past couple years, but craft breweries are now more popular than ever.
They provide worthy competition for the mass-produced beer the U.S. is known for. They can only brew a certain amount of beer until they move into mass brewing territory, and they’re a recession proof industry with beer remaining somewhat affordable.
Now, craft brewers across the country are uniting and trying have their collective voice heard when it comes to the nation’s tax code.
After having their inaugural Craft Brewers Conference in Washington, D.C. in March 2013, microbreweries want to reform the tax levied on breweries.
Brewers making less than two million barrels of beer pay $7 on each of the first 60,000 barrels produced each year. After that, the tax moves up to $18. The vast majority of brewers make less than 15,000 barrels annually.
Tax legislation considered by Congress would reduce these taxes by half. All breweries would pay a $18 per barrel tax for each barrel beyond two million.
The nation’s brewery taxes were written and adopted in 2011. But now the smaller brands are trying to convert their popularity into political capital.
And microbreweries can make for good politics. They’re small businesses, and specialize in the suds that have become one of the U.S.’s favorite drinks. Americans spent upwards of $100 billion on beer in 2012.
Whether brewers will have success in Congress remains to be seen. Rest assured the lobbyists for the corporate beer giants probably like the brewer tax the way it is, but microbreweries have the tongues – and maybe the ears – of more and more of the American drinking public.
Good conversations can be had over a good beer, but great finances come from better financial management. If you’re in debt to the IRS for back taxes, working with a tax professional is your best bet to avoid a wage garnishment or bank levy.
The money you save on penalties and interest can then be enjoyed over a cold one.