Beer Tax Cut Could Be Middle Class Boon

Want to provide some real middle-class tax relief? Halve the taxes levied on beer, say a bipartisan group of lawmakers, along with one of the beer industry’s lobbying groups.

Rep. Earl Pomeroy (D-N.D.) introduced a bill Tuesday that would cut taxes on beer to their level in 1991, half of what they are today. The legislation is supported by a coterie of members of Congress from both sides of the aisle, and has the support of the brewers’ interest group.

“50 percent of the beer is consumed in households making less than $50,000 per year,” said Jeff Becker, president of The Beer Institute, the industry’s lobbying arm. “Given campaign rhetoric, you can tell they’re trying to benefit low-income earners, who make up a lot of our consumers.”

The latest version of the tax cut, which has been introduced for several consecutive Congresses now, would also roll back taxes on small and independent brewers. Pomeroy’s office estimate the tax cut to cost roughly $1.5 billion dollars. The version introduced in the 110th Congress stalled after being referred to the Ways & Means Committee.

11 lawmakers from both parties signed onto the Pomeroy bill: House Minority Whip Eric Cantor (R-Va.) and Reps. Tom Latham (R-Iowa), Sam Johnson (R-Texas), Ron Kind (D-Wisc.), Patrick Tiberi (R-Ohio), Artur Davis (D-Ala.), Charles Boustany (R-La.), Joseph Crowley (D-N.Y.), Brian Higgins (D-N.Y.), Dean Heller (R-Nev.), and Bill Pascrell (D-N.J.).

Becker said that the dispersion of small brewers across the country would help draw in more lawmakers, which could in turn drive the beer tax cut to be included in a comprehensive tax reform package later this year or next year.

“It’s about the people who pay the taxes,” Becker said. “We want to garner enough legislative support so that when people are looking for options, they’ll see that this is available.”

A spokeswoman for Pomeroy said that the congressman is hopeful to finally move the bill, but that Paygo considerations had to be taken into account.