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Tax bill and local breweries
Posted on 12/21/17 at 9:45 am
Posted on 12/21/17 at 9:45 am
I figured this is more FDD than Poli.
It looks like this will have an extremely positive effect on local small brewers. I was listening to NPR last night on the way to the store and they were interviewing this gal brewer in CA and she had nothing but positive things to say despite the host desperately trying to get her to say something against it.
NPR
I'm interested to see how this affects the local scene in the next couple of years. This is no small potatoes.
It looks like this will have an extremely positive effect on local small brewers. I was listening to NPR last night on the way to the store and they were interviewing this gal brewer in CA and she had nothing but positive things to say despite the host desperately trying to get her to say something against it.
NPR
quote:
The Senate measure would slash the federal excise tax to $3.50 from $7 per barrel on the first 60,000 barrels for brewers that produce fewer than 2 million barrels a year. It also would reduce the federal excise tax from $18 to $16 per barrel on the first 6 million barrels for all other brewers.
"There's a lot of competition out there," Sharpe said. "Cutting our quarterly excise tax in half would give us this awesome amount of money lying around, so we could boost our quality control lab, buy more new, exciting hops, and hire more employees."
For companies the size of Dark City, the tax break's savings would have a disproportionately big impact, according to the Brewers Association. "We think the vast majority of this benefit accrues to the smallest brewers in the country," Watson said.
I'm interested to see how this affects the local scene in the next couple of years. This is no small potatoes.
1
Posted on 12/21/17 at 10:19 am to Loungefly85
quote:
Does Sharpe think that this will lower the cost of his craft beer?
"Unfortunately, no," he says. "It'll just make it easier for small breweries like us to stay in business."
Doesn't appear that the savings will be passed on to the consumer. Bummer.
Posted on 12/21/17 at 10:34 am to McVick
quote:
Doesn't appear that the savings will be passed on to the consumer. Bummer.
My opinion only, but the beer brewing business is a low margin business. High failure rate. $8.99 or $9.99 doesn't make a bit of difference to me. There is a price where I wouldn't buy, but value is in the flavor, not necessarily a price decision. I don't mind if the savings go to helping a few more breweries stay in business or make money.
Oh and just for reference, it says $3.50 per barrel cheaper. That comes out to $.07 per 6 pack if they were to pass the savings on to consumers.
This post was edited on 12/21/17 at 10:37 am
Posted on 12/21/17 at 10:35 am to McVick
I'm more interested in increased production, capacity, and quality.
Although cheaper would be nice.
Although cheaper would be nice.
Posted on 12/21/17 at 10:40 am to McVick
quote:
Doesn't appear that the savings will be passed on to the consumer. Bummer.
It's really up to the individual breweries how they spend or don't spend that extra capital. The smart breweries will use it for expanding and improving their breweries. You'll only see price changes from smaller breweries if competition forces their hand. So if Urban South cuts their product by $1, this may force Parish, and Gnarly Barley to do so, just as an example, assuming all products are equitable.
Don't see how these tax cuts are anything but great for small business and breweries.
Posted on 12/21/17 at 10:51 am to BugAC
Would be cool for a local blogger to write an article about this
Posted on 12/21/17 at 11:03 am to TigerWise
quote:
Would be cool for a local blogger to write an article about this
They're too upset from reading angry tweets from people who hate Trump 4 hours a day to even think about beer at a time like this.
Posted on 12/21/17 at 11:05 am to BugAC
quote:
So if Urban South cuts their product by $1
The distributor and the retailer would absorb that. Highly doubtful a shelf price decrease will appear.
This is great news though. Like others have said smart breweries will invest the extra cash into equipment. Good deal
This post was edited on 12/21/17 at 11:07 am
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