Alcohol Industry Presses Congress for Reduced Federal Liquor Tax August 27, 2002
News Summary
The liquor industry is urging Congress to lower the federal excise tax on beer, wine, and liquor, the Associated Press reported Aug. 26.The proposal comes at a time when many U.S. states are raising state liquor taxes to address budget deficits.
A campaign by the beer industry says that the federal beer tax is unfair to working-class Americans. "Beer is one of the simple pleasures of this group, a pleasure that most often is enjoyed -- responsibly -- at night, in the home. Lowering the beer tax means more money in the pockets of these young, hard-working men and women," an Anheuser-Busch website said.
Currently 200 U.S. lawmakers, many of whom receive political contributions from the alcoholic-beverage industry, have indicated their support to tax cut proposals.
The proposal to reduce the distilled spirits tax is being sponsored by Rep. Ron Lewis (R-Ky.), while the beer tax cut is being proposed by Rep. Phil English (R-Pa.). The legislation would reduce the current beer tax from $18 per barrel to $9.
Editor's Note: Both the Center for Science in the Public Interest and Mothers Against Drunk Driving have issued action alerts regarding this bill.
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