Senators propose lowering alcohol tax

Boozy benefits are tucked into the Senate tax plan

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Senate Republicans are proposing significant excise tax reductions for wine, liquor and beer -- including one that slashes in half the rate for craft brewers.
But the party could be short lived. Even if it passes, the proposed tax reductions are set to expire after two years.
"We're gratified to have achieved this and we're hoping to build on it in the future," said Mark Gorman, senior vice president for the Distilled Spirits Council, the industry group for the $65 billion liquor industry.
He said that he hopes to extend the reductions beyond two years.
"It's terrific recognition that distilled spirits have been overtaxed for a long time and this would the first distilled spirits tax reduction since the Civil War," he said.
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For beer, which is currently taxed at $18 per barrel, the proposal would lower the tax rate to$16 per barrel for the first two million barrels produced or imported, and after that it would go back up to $18.
Small brewers would be taxed at $3.50 per barrel for the first 60,000 barrels produced in the U.S., and the rate would go back up to$16 after that. They are currently taxed $7 for barrel for the first 60,000 barrels.
"We estimate that the potential $130 million generated by this legislation could give brewers and importers the opportunity to reinvest in their operations which will ultimately add to the American economy through technology, innovation and jobs," said Denise Dunckel, spokeswoman for the Beer Institute, an industry group representing brewers.