Excuse me while I continue to rush about trying to take advantage of the benefits tucked into the Republican Tax Plan, now subject to a conference to settle differences between the Senate and House versions. I need to start making beer.
“The tax cut legislation includes a provision that cuts taxes on beer, wine, and liquor produced or imported into the country, saving companies involved around $4.2 billion over 10 years. The provision mirrors language from the Craft Beverage Modernization and Tax Reform Act, or S. 236, introduced by Sen. Roy Blunt, a Republican from Missouri and a member of the Senate GOP leadership team. (While the legislation does benefit craft, or small breweries, it extends the cuts to larger companies and the industry as a whole.)”
There’s a bit more:
“…the Senate has a thing for craft brewing. The updated bill includes what is effectively a major new piece of alcohol legislation, cutting taxes on beer produced in the U.S.—and especially on small breweries. Taxes on the first 60,000 barrels of beer produced domestically by small brewers would be cut in half, from $7 to $3.50. The tax rate on the first 6 million barrels produced would fall from $18 to $16 per barrel. Anheuser-Busch produces tens of millions of barrels of beer a year; a small brewer like D.C. Brau produces around 15,000. The reforms also cut taxes on certain wines and make other technical changes to federal alcohol rules.”
And more become where there’s beer there’s wine:
“The first thing the new bill does is take the tax credit, currently only available to wineries making up to 250,000 gallons, and expand it to all wineries regardless of how much wine they make overall. The two tiers in current law would become three tiers: Wineries will receive a $1 credit per gallon for the first 30,000 gallons made, $0.90 for the next 100,000, and $0.535 for the next 620,000. Wineries making more than 750,000 gallons pay the full tax rate on everything over 750,000 gallons.”
There’s also a tip of the hat to the current penchant for making wine with a higher alcohol content. We’ll need that — higher alcohol content — to get through the Great Tax Shift from Corporate America to the Middle Class. (There’s more info on the underlying bill for those who are interested.
Republicans seem to have a different perspective on spirits, depending on who is consuming them. Senator Grassley (R-IA) appears to approve of Upper Class Guzzling, for the other 99.8% of us, not so much.
“I think not having the estate tax recognizes the people that are investing,” Grassley told the Register. “As opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies.”