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Message to Congress: Oppose Industry Bills to Slash Beer Taxes

Big Beer is at it again, pushing self-serving bills (H.R. 1610 / S. 1995) to enrich its bottom line by slashing the federal excise tax on beer by 50%, to its 1951 level! Please urge your legislators to stand up to the beer lobby by opposing these bills. Ask him or her instead to consider a well-justified increase in alcohol taxes to provide needed funds for children’s health care and other domestic spending priorities.
Please urge your Representative and Senators to oppose H.R. 1610 and S. 1995, respectively, and instead support a long over-due increase in the federal excise tax on beer and all alcoholic beverages as a just and available revenue source to fund essential health care programs.   

Sample Letter for Campaign

Subject: Oppose Industry Bills to Slash Beer Taxes

Dear [ Decision Maker ] ,

As a constituent of yours, I urge you to refrain from co-sponsoring beer-industry backed legislation (H.R. 1610 in the House and S. 1995 in the Senate) that would irresponsibly slash beer taxes by half. I urge you to reject this unwise bill, and instead support a long-overdue increase in all alcohol excise taxes to reduce the deficit or pay for key healthcare programs.

Current federal and state taxes on alcoholic beverages do not come close to offsetting the huge public health and safety costs of alcohol consumption-- estimated at $184 billion per year, including $62 billion per year for the costs of underage drinking alone.

Alcohol tax increases have been rare and modest. Beer and wine taxes have been raised only once in the past 56 years, liquor taxes only twice. As a result of Congress' failure to adjust the tax for inflation since the last increase in 1991, the Treasury has lost some $24 billion in revenues that could have helped support under-funded health and human needs programs or reduce the deficit.

A beer tax cut would not benefit the vast majority of consumers. About one-third of adults don't drink at all, and among those who do, most drink so little that they would barely notice a tax decrease (or increase). Alcohol tax cuts would benefit only producers and the 20% of drinkers who imbibe heavily and consume 85% of the alcohol.

Cheaper beer would worsen rates of underage drinking and its harms. A large body of research has established that higher alcohol prices are one of the most effective means of reducing underage consumption. Both the National Academies of Science and the Office of the Surgeon General have respectively called for reducing the availability of alcohol to underage youth by increasing the cost of obtaining it.

Given the enormous toll of the nation's existing alcohol-related public health and safety problems (which cost our country more than $175 billion per year), why should Congress add a tax cut to the free ride the beer industry has enjoyed for so long? If anything, beer and other alcohol excise taxes should be increased instead.

I respectfully request that you reject special-interest beer industry appeals to lower federal excise taxes on beer. Please let me know your views on this issue, and I look forward to hearing from you soon.

Sincerely,

Campaign Launched:
April 04, 2007



Background Information

H.R. 1610 represents the worst example of corporate welfare, especially because beer taxes are already so low.  The federal tax on beer (about a nickel per serving) has been raised only once since Harry Truman was president, and today’s tax rate is 30% less than what it would be had it  kept up with inflation since that one increase in 1991.  Revenues from the beer tax have declined dramatically: as a percentage of retail sales, as a percentage of federal revenues, and as a percentage of Gross Domestic Product.  As a result, beer is far cheaper today, relative to other consumer products, than it was twenty and thirty years ago.

 

Alcohol tax cuts would benefit only producers and the 20% of drinkers who consume 85% of the alcohol.  Most people would not be affected or would barely notice, because about one-third of adults don’t drink at all, and among those who do, most drink very little. 

  

You can find more alcohol tax facts and background here: http://www.cspinet.org/booze/taxguide/TaxFederal.htm

 
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