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Proposed Legislation Would Cut Federal Taxes For Local Breweries

PHILADELPHIA, Pa. (CBS) — At Victory Brewery Company in Downingtown, Ron Barchet has turned beer into the American dream.

“It’s great to get up to go to work because it doesn’t feel like work at all to me,” smiles Barchet.

His brewery will make nearly a quarter million gallons of beer this year, and it keeps growing. He hired four employees this week.

“I think you’ll find craft brews here and across the country have grown,” says Barchet.

Now all this beer-making could get even bigger. A proposal to cut the federal excise tax on beer would save the company $210,000.  And 101 other breweries across the state would also save, allowing for more jobs, and more beer.

“It’s important that the business grows because it’s manufacturing jobs here in the state,” points out Barchet.

P. J. Whelihan’s in Downingtown has forty-eight beers on tap. Here, more options means more business.

“Breweries can brew better beer and that brings more people out,” says Jason Catagnus, manager of the Downingtown restaurant.

More than an evening drink, beer has become a $6.9 billion industry in Pennsylvania sccording to the latest study, growing even through the tough economy of the last few years. And with the possibility of a federal tax cut, businesses are poised to keep on brewing. 

But brewers warn the price of beer is not likely to drop, since any tax savings would be offset by the rising price of the ingredients for beer like barley and hops.

Reported by Oren Liebermann, CBS 3

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    Here is Similar Story

    There’s some legislation working it’s way through Washington right now that would help me, and every other brewery and potential brewer out. For small brewers – defined as a brewery producing less than 6 million barrels a year – the legislation would lower taxes dramatically. The first 60,000 barrels are currently taxed at $7 a barrel. That would drop to $3.50. From 60,000 to 6 million barrels, the tax would drop from $18 a barrel to to $16 a barrel.

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