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Friday, April 22, 2005

The single most important issue in the history of mankind

Posted by: Hammer / 1:30 PM

Beer is proof that god loves us and wants us to be happy -- Ben Franklin.

I don't know if I love beer. But I certainly enjoy beer. I brew my own, as time permits, and I support local breweries across two states. (Not all by myself, mind you, I'm but a moderate drinker.) So this double whammy of beer legislation is pissing me off to no end:

Sen. Rick Santorum (R-Pa.) has proposed a cut in the federal excise tax on beer. If enacted, the cut would reduce the tax from $19 a barrel to $9 a barrel for breweries that produce over 2 million barrels a year. Smaller breweries will see a similar reduction for every barrel over 60,000.
It is what it is -- a tax cut for Budweiser and Miller. A potential tax cut for the mid-majors. And a big F U to Viking Brewing, makers of Abby Normal. Big business and crappy beer win again. Big surprise. But wait, it gets worse:
AlcoholOld taxNew tax
Distilled spirits$5.03/gal$17.69/gal
Low alcohol wine$.303/gal$2.40/gal
High alcohol wine$3.523/gal$5.56/gal
3.2 Beer$2.40/barrel$35.32/barrel
Real Beer$4.60/barrel$37.52/barrel
That's right -- the Minnesota legislature is considering a 715% tax increase on beer. (Senate bill link is above. House bill is here) There's a credit for small brewers in the Minnesota (less than 100,000 barrels annually) for the first 25,000 barrels produced, which is imporant.

I guess I needn't worry -- Gov. Pawlenty has promised no new taxes, so there's no chance this will pass, unless he breaks a campaign promise. What's the chance of that happening?

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