Craft Brewer’s may feel ill effects of Obama-Care
The Democratically controlled Senate Finance committee is looking for ways to offset the enormous costs of what could become the “Obama-care” national health care plan. Whatever your political stance is on the core issue of health care nationalization, someone is going to have to pay the piper. Printing money and taxing your employer-provided health care benefits are a few ideas being kicked around (but I thought Mr. “O” dogged Mr. McCain for suggesting those ideas in the debates? Oh well, I am sure our trained skeptics in the Press will follow-up on that. Maybe after they are done drooling over Mr. “O”…). One particularly punitive plan will squarely target the alcoholic beverage industry with the largest increases falling on the backs of craft brewers. This new excise tax will be levied on the brewers (and paid for by beer drinkers) as a “Case tax” or “Barrel Tax” which will triple the current tax on beers of 4.5%abv and go higher on stronger brews.
The Brewers Association based in Boulder Colorado has come out swinging against this proposed tax. The BA represents the many small craft brewers in this country and they are joined by many other alcohol industry trade organizations in opposition to this form of punitive taxation. In a recent letter to BA and American Home Brewing Association members, President Charlie Papazian states that “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 letter goes on to say that brewers already pay a disproportionately higher share of taxes compared to other products; with the total tax burden (Federal, State and Local) being 40% of the retail cost of beer whereas the tax burden for wine and other alcoholic beverages average about 24%.
There is no doubt that such taxation (which is always passed on to the consumer), will have a negative effect of craft beers, which already command a hefty premium in the marketplace when compared to mass produced yellow-fizzy beers. It would be a shame to see this wonderful beer culture which is quickly becoming the envy of the world, falling victim to the overreaching hand of the federal government once again meddling in the private sector and ruining an otherwise healthy market (anyone remember the mortgage crisis?) But hey, “Yes they can”!
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June 9th, 2009 at 12:11 pm
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June 10th, 2009 at 10:19 am
I wrote a letter to Rockefeller, and enlisted a friend to do so as well. I sincerely hope this proposal doesn’t become reality.
June 10th, 2009 at 2:09 pm
Rich - This has nothing to do with the craft beer tax situation, but I have a question.
I recently picked up a six pack of Czechvar. When I first pulled a bottle from the carton, I immediately noticed that the label clearly said “Budvar”, with the name “Budweiser” further down on the label.
I’ve read some of the back story behind the naming of this brew, and I didn’t think they could call it “Bud”-anything in this country. Any idea what’s going on here?
(PLEASE - don’t tell me it was sent here by mistake and would be valuable to a collector, etc., because it’s long gone, and so are the bottles!)
June 10th, 2009 at 2:33 pm
Mike, that used to be a problem but now that InBev (owner of Czechvar) and Anheuser-Busch are the same company, I don’t think there is an issue. Yours may very well have been a mistake, but I not sure; maybe they are going to start using the beer’s real name over here as well…
June 10th, 2009 at 2:51 pm
I wrote to Rockefeller also. Nothing like trying to punish an industry that has actually had growth while we “bailout” the poorly run ones. Welcome to “the change”.
June 11th, 2009 at 12:11 pm
According to this…
http://www.msnbc.msn.com/id/29883341/
In-Bev does not own Budvar/Czechvar. Of course this is a few months old so maybe things have changed.
June 11th, 2009 at 12:18 pm
Here is a thread on the Bud debate from BeerAdvocate
http://beeradvocate.com/forum/read/1921489
June 12th, 2009 at 5:03 pm
Travis, yes you are correct. I answered Mike incorrectly. Staropramen is an AB-Inbev product but not Budvar/Czechvar (I confused them); though A-B did become the distributor for Czechvar in the U.S. after all of the lawsuits were settled, proving the old saying “follow the money”…
June 13th, 2009 at 4:21 pm
Apropos of nothing, I am enjoying a yellow fizzy beer right now.
Of course, it’s not from BMC. It’s Mamma’s Little Yellow Pils. Golden goodness in a can, courtesy of those fine folks at Oskar Blues, Lyons CO.
June 19th, 2009 at 4:52 pm
If anyone gets to Jacksonville, FL they have a new craft beer available at the Brewer. “Bold City Brewery” on Rozelle St or at many bars on the uppie Avondale ares. On Fridays they have a cook out at the Brewery. They have 7 beers but I personally prefer “Duke’s Brown Ale”.
June 30th, 2009 at 6:56 pm
Beers To You » Blog Archive » Craft Brewer’s may feel ill effects of Obama-Care great article thank you.
July 21st, 2009 at 2:23 pm
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