Senators Call for Lower Alcohol Producer Excise Taxes

December 1, 2020

The Honorable Mitch McConnell
317 Russell Senate Office Building
Washington, DC 20510

The Honorable Charles Schumer
322 Hart Senate Office Building
Washington, DC 20510

Dear Majority Leader McConnell and Minority Leader Schumer:

We are writing today to ask you to pass the Craft Beverage Modernization and Tax Reform Act (S. 362/H.R. 1175) and make the existing federal excise tax rates for beverage alcohol producers permanent.

Every state in our nation is proudly home to craft distillers, brewers, wineries, cideries, and meaderies who without Congressional action, face a significant increase in their federal excise taxes on January 1, 2021.

In addition to creating jobs in every state and Congressional district, beverage alcohol producers are critical partners to our farmers and agriculture producers, the tourism industry, the manufacturing sector, and the hospitality industry, including restaurants, bars, and other on-premise establishments. Together, these producers support over four million jobs across the country and contribute immensely to the vibrancy of our economy and communities.

However, with the economic duress brought on by the COVID-19 pandemic, producers' businesses have been devastated which would be compounded by an increase in their federal excise taxes. Producers have already seen dramatic declines in revenue because of the closures of tasting rooms and restaurants, bars, and other on-premise establishments and cancelations of major sporting events and concerts. These losses ripple throughout the supply chain, affecting farmers, agriculture producers, manufacturers, truck drivers, warehouse workers, and countless others.

It is imperative that the Craft Beverage Modernization and Tax Reform Act be included in the next appropriate legislative package and acted upon before the end of the year. As businesses struggle to retain workers and stay open, allowing the current rates to lapse would force many businesses across the country to lay off workers or close their doors permanently. With the support of 77 Senators and 351 Representatives, this bill is a bipartisan priority and an important economic lifeline to thousands of businesses across the country.

Sincerely,

Ron Wyden
United States Senator

Rob Portman
United States Senator

Tammy Baldwin
United States Senator

John Barrasso, M.D.
United States Senator

Michael F. Bennet
United States Senator

Marsha Blackburn
United States Senator

Cory A. Booker
United States Senator

John Boozman
United States Senator

Sherrod Brown
United States Senator

Mike Braun
United States Senator

Maria Cantwell
United States Senator

Shelley Moore Capito
United States Senator

Benjamin L. Cardin
United States Senator

Susan M. Collins
United States Senator

Tom Carper
United States Senator

Kevin Cramer
United States Senator

Robert P Casey, Jr.
United States Senator

Steve Daines
United States Senator

Christopher A. Coons
United States Senator

Joni K. Ernst
United States Senator

Catherine Cortez Masto
United States Senator

Deb Fischer
United States Senator

Tammy Duckworth
United States Senator

Josh Hawley
United States Senator

Richard J. Durbin
United States Senator

John Hoeven
United States Senator

Dianne Feinstein
United States Senator

James M. Inhofe
United States Senator

Kirsten Gillibrand
United States Senator

Ron Johnson
United States Senator

Margaret
United States Senator

Kelly Loeffler
United States Senator

Martin Heinrich
United States Senator

Jerry Moran
United States Senator

Mazie K. Hirono
United States Senator

M. Michael Rounds
United States Senator

Angus S. King, Jr.
United States Senator

Marco Rubio
United States Senator

Amy Klobuchar
United States Senator

Dan Sullivan
United States Senator

Patrick Leahy
United States Senator

Thom Tilis
United States Senator

Robert Menendez
United States Senator

Roger F. Wicker
United States Senator

Jeffrey A. Merkley
United States Senator

Todd Young
United States Senator

Patty Muray
United States Senator

Christopher S. Murphy
United States Senator

Jacky Rosen
United States Senator

Gary C. Peters
United States Senator

Brian Schaltz
United States Senator

Jeanne Shaheen
United States Senator

Kyrsten Sinema
United States Senator

Tina Smith
United States Senator

Debbie Stabenow
United States Senator

Jon Tester
United States Senator

Chris Van Hollen
United States Senator