Congress Plans $321 Giveaway to Big Alcohol

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Political junkies are already familiar with the term “reverse Robin Hood,” wherein fiscal policy seems to take money from the poor and give it to the rich. A bill currently before Congress, S. 236 / H.R. 747, elaborates on that theme with a “reverse Friar Tuck,” wherein those profits go to the richest alcohol companies at the expense of American citizens who have been impacted by drinking.

Alcohol Justice has detailed elsewhere how S. 236 / H.R. 747, aka the Craft Beverage Modernization and Tax Reform Act (CBMTRA), hides behind the lie of fostering small business growth. In fact, the benefits to small brewers and distillers are nominal. A new AJ report, however, gives dollar estimates of the industry giveaways. Among the most egregious fiscal giveaways:

• At least $321 million of lost revenue.
• $50 million to 7 “craft” brewers that produce over 2 million barrels annually.
• $128 million to distillers producing over 100,000 proof-gallons—250% more than distillers under 100,000 proof-gallons receive.
• $18 million lost in undermining a tax break meant to reward makers of lower ABV wines.
• An extension of credits meant for small wineries to those producing up to 620,000 gallons of wine.

“This dishonest federal measure is being portrayed as an incentive for small craft brewers,” said Bruce Lee Livingston, Executive Director/CEO of Alcohol Justice. “But the real winners are the largest beer and spirits producers in a race to cut their already ridiculously low tax rates.”

As significant as they are, these figures reflect only the giveaways for domestic alcohol production. Further language guts the government's ability to tax imports. Alcohol Justice has prepared a preliminary report on the financial impact of the CBMTRA, but has only scratched the surface. The organization urges everyone concerned with promoting public health to oppose this bill and stand up for public health.

TAKE ACTION to tell Congress to pick public health over Big Alcohol.

READ MORE about Alcohol Justice’s stand against S. 236 / H.R. 747.

READ MORE about the costs of this bill and the opportunities for charge-for-harm it takes away.

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