I'm going to pass along info from the Brewer's Association about the proposed excise tax increase on beer and I encourage everyone to read it, but first I want to address everyone that reads this blog. First of all, thanks for buying our beer. We literally can't do it without you guys. All our work is for naught if you guys don't buy the beer. But everyone has done so much more than just buy our brew. You  guys and gals carry our torch everywhere you go! I have heard from so many retailers and pub owners over and over how vocal our supporters have been about requesting they stock CCB beer. Please continue to do so and we'll continue to brew with you guys in mind.

But I do have a favor to ask. I know everyone is busy and reading about the fast paced world of Excise Tax Bills is probably more additional excitement than most folks can bear, but this is a very important issue to small breweries like CCB. The big guys can absorb these tax hikes. The little guys can't. Our beer is already far more expensive and slow to make than the macro brews. Tacking on additional taxes will price many people out of our price range. And if our business is hurt it effects everyone we do business with. Our local bottle, apparel, malt and glassware suppliers. The local artist who does our label design. The coffee roaster we buy espresso from. The local business who sells us growlers, our brewery staff (which is now up to 3 by the way, more on that later) will all be effected by a beer tax increase.

So I am hoping you guys can show your support for CCB and other small breweries across the country, one more time. Please read the following info from the Brewer's Association and please contact your Senator and encourage them to vote against raising the federal excise tax on beer, which will punish small brewers more than others. Instead encourage them to support Senate Bill 1058 which would lower the excise tax on breweries brewing less than 60,000 bbls a year, putting the smaller breweries on a more level playing field.

If you live in Florida you'll want to write or call Senator Bill Nelson. If you are from another state read the BA letter to determine which Senator to contact:

Dear Beer Enthusiast,

Small brewers are facing an imminent and extremely serious threat to their businesses. The consequences of remaining silent have the very real potential of reducing your choice of beer and dramatically increasing the price of any beer that you purchase.

The Senate Finance Committee in Washington, DC is currently considering a proposal to increase and equalize the excise tax for alcohol beverages as part of healthcare reform deliberations. This proposal would triple the excise tax for 4.5% ABV beer and impose even higher excise tax rates for higher ABV beers.

If such a proposal becomes reality, there is no question that many small brewery businesses will suffer, some will close and consumers will face higher prices and diminished choice in the marketplace.

The Brewers Association brewery members and leadership have been actively engaged in building the case against an excise tax increase, recently submitting a letter to the Committee outlining our opposition.

We need you to speak out now. Today or tomorrow at the latest.

If you live in the following states it is most urgent that you contact your Senator who is on the Senate Finance Committee:

Arizona	Nevada
Arkansas	New Jersey
Delaware	New Mexico
Florida	New York
Idaho	North Dakota
Iowa	Oregon
Kansas	Texas
Kentucky	Utah
Maine	Washington
Massachusetts	West Virginia
Michigan	Wyoming
Montana

If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Your ask of them is simple:

Oppose the Tax Increase. Let them know that you oppose, in the strongest possible terms, raising the federal excise tax on beer because of the serious consequences it would have on small brewers and the craft beer they brew. Additional talking points appear below.

Once again: If one of your Senators sits on the Senate Finance Committee (roster of members below), urge them to oppose this proposal in committee deliberations.

If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Take Action - Call and/or email your Senators’ Washington or district offices and make your personal case against this massive excise tax increase.

As always, thanks for your support.

Charlie Papazian
President, Brewers Association

Thank you to all who have already contacted your U.S. Senators on the issue of federal excise tax increases.

For those of you who haven’t, please immediately call and email the offices of your Senators concerning the excise tax increase being considered in the Senate Finance Committee.

The committee is at a critical point in their deliberations.  We may have only  hours more to make our voices heard.

Every Senator must hear a strong voice of opposition from their constituency to increasing the tax, as this will give us the best chance of turning back this proposal before any legislation is drafted.

Make these contacts now…before it’s too late.

Following is the email sent out previously on contacting Senators, with helpful background and talking points. 

BA Brewery Members,

We collectively face an extremely serious threat to the small brewing industry and to the very existence of some of its members. As you know, the Senate Finance Committee in Washington, DC has held hearings on, and is currently deliberating the merits of, a proposal to increase and equalize the excise tax for alcohol beverages in order to fund healthcare reform. This proposal would triple the excise tax for 4.5% ABV beer and impose even higher excise tax rates for higher ABV beers.

Brewers Association staff and Board members have been actively engaged in building the case against an excise tax increase, recently submitting a letter to the Committee outlining our opposition.

We need you to speak out now.

The ask of you is simple:

Point 1 – Oppose the Tax Increase. Contact your two U.S. Senators and let them know that you oppose, in the strongest possible terms, raising the federal excise tax on beer by any amount.

If one of your Senators sits on the Senate Finance Committee (roster of members below), urge them to oppose this proposal in committee deliberations. If your Senators are not members of that committee, ask them to contact their Finance Committee colleagues and express their opposition to this proposal moving forward.

Talking points on this issue appear below.

Point 2 – Support S. 1058. Ask them to sign on as a cosponsor of S. 1058 (identical to HR 836 introduced in the House of Representatives in February), the bill that would halve the small brewer excise tax differential, from $7.00/barrel to $3.50/barrel on the first 60,000 barrels.

Why cut taxes in an economy where funding shortfalls are rife? Because easing the tax burden on businesses in such a challenged economy will result in a reinvestment and recommitment in the very businesses that built the strong economy we once enjoyed and will enjoy again. For talking points on this legislation, see the BA Excise Tax Resource Page or simply thank your Senator if they are already a supporter (to view the current roster of Senators who have signed on, enter “S1058” in the search box as a “Bill Number” search thomas.loc.gov/" href="http://www.maildogmanager.com/link.html?url=1612&client=aobhtml&campaign=2239&email=joe@cigarcitybrewing.com" target="_blank">here.

Take Action - Call and/or email your Senators’ Washington or district offices and make your personal case against this massive excise tax increase and in support of S. 1058.

As always, thanks for your support.

Charlie Papazian
President, Brewers Association

Senate Finance Committee Members:

Baucus, Max (MT), Chairman	Bingaman, Jeff (NM)
Bunning, Jim (KY)	Cantwell, Maria (WA)
Carper, Thomas R. (DE)	Conrad, Kent (ND)
Cornyn, John (TX)	Crapo, Mike (ID)
Ensign, John (NV)	Enzi, Michael B. (WY)
Grassley, Chuck (IA), Ranking Member	Hatch, Orrin G. (UT)
Kerry, John F. (MA)	Kyl, Jon (AZ)
Lincoln, Blanche L. (AR)	Menendez, Robert (NJ)
Nelson, Bill (FL)	Roberts, Pat (KS)
Rockefeller, John D. (WV)	Schumer, Charles E. (NY)
Snowe, Olympia J. (ME)	Stabenow, Debbie (MI)
Wyden, Ron (OR)

ISSUES OF IMPORTANCE TO SMALL BREWERS EXCISE TAXES

Small brewers are small Main street businesses, typically employing 10 to 50 employees.

• We represent only 4% of the entire U.S. beer market by volume, with 95% of us being very small businesses (producing 15,000 barrels or less per year).

We strongly oppose proposals to increase the excise tax on beer.

• Proposals to increase and equalize the tax among all types of alcohol will tax small brewers at the highest rates because our specialty, gourmet and innovative beers typically have higher alcohol contents.
• Brewers already pay a disproportionately higher share of taxes compared with other products – federal, state and local taxes represent over 40% of the retail price for beer while the same taxes equal nearly 24% of the price for all other purchases.

Higher taxes will worsen the economic recession – resulting in less competitive products, reduced sales and revenues, lost jobs and, for some small brewers, business closures.

• $1 per case excise tax increase will typically cost the consumer at least $1.69 due to successive mark-ups as the case moves from brewer to wholesaler to retailer.
• Many small brewers are struggling to deal with the consequences of the 2008 spike in ingredient and operational costs and in the near future will also be faced with significant new costs to address pending federal labeling requirements. The cost of these new requirements for small brewers alone is collectively estimated to be up to $100 million.