tag:blogger.com,1999:blog-7695054139670388214.post4800629281219338558..comments2024-03-25T02:38:06.683-07:00Comments on Beeronomics: Taxes and Beer: The BEER Act is in TroublePatrick Emersonhttp://www.blogger.com/profile/17242234148546323374noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7695054139670388214.post-24273934660044502492011-10-05T12:41:10.262-07:002011-10-05T12:41:10.262-07:00I don't think you're looking at this the r...I don't think you're looking at this the right way. Breweries are assessed an excise tax <i>over and above</i> regular Federal, state, and local taxes. This would lower the <i>additional</i> tax they already pay. (We could launch into a debate about Pigouvian taxation and the costs of brewing, but my firm conviction is that this is purely a moralistic sin tax, not Pigouvian.)<br /><br />As a stimulus, it's pretty sound logic. Craft breweries employ more people than major breweries because they're less efficient. Brewers would invest the savings into growing their businesses (they are in the rare industry able to do that), which would employ more people. It's not double bank-shot incentives, either; breweries have readily announced their intentions to expand if they could get the break.<br /><br />Your reason--that carve-outs are bad public policy--is warranted in discussing structural policy changes. Using the rationalization in a system that is rife with carve-outs that leave some industries (financial, energy, farm) net <i>beneficiaries</i> of federal dollars (at worst, they're taxed at very low levels) doesn't make a whole lot of sense. It's like arguing that Warren Buffett should pay more taxes just because he thinks the tax code should change. Silly.Jeff Alworthhttps://www.blogger.com/profile/02930119177544342495noreply@blogger.comtag:blogger.com,1999:blog-7695054139670388214.post-46357470063937310542011-10-04T18:45:05.681-07:002011-10-04T18:45:05.681-07:00I have to agree that when you consider all the peo...I have to agree that when you consider all the people that need a tax break, craft brewers are pretty far down the list.Derrick Petermanhttps://www.blogger.com/profile/03965272125362046327noreply@blogger.comtag:blogger.com,1999:blog-7695054139670388214.post-84261819174132697572011-10-04T09:48:32.072-07:002011-10-04T09:48:32.072-07:00The very reason the craft beer industry needs a ta...The very reason the craft beer industry needs a tax cut is BECAUSE its booming... The ever increasing demand for craft beer means we can selectively cut taxes to small breweries - those who have the market for expansion, but not the money. The built in craft beer market means guaranteed jobs in a successful industry, whereas tax cuts targeting less successful sectors mean more risk, and less potential for guaranteed growth and jobs. At least in my humble, money grubbing, brewer opinion....Little Davehttps://www.blogger.com/profile/11893058247952543867noreply@blogger.com