Republican Lawmakers Want Cheaper Beer

Here in America, we’re living through some fairly rocky political times. It seems that the vast majority of the country struggles to agree on anything. Party politics aside, and in no way looking to cause controversy, it’s about time we got some objectively good news from D.C.

Recent: Brewery Review – Max Lager’s (Atlanta)

Well, beer drinkers rejoice. Recent news states that Senate Republicans are pushing a bill that would, theoretically, make your (domestic) beer cheaper.

The proposed bill, would see the excise on beer produced in the U.S. decrease from $18 per barrel to $16 per barrel for the first six million barrels. This cut will mean a big saving for larger brewers who, in theory but less likely in practice, could pass these savings on to the end consumer.

Featured: America’s Biggest Craft Beer Cities

The news for your favorite microbrewers is even better! Companies producing less than two million barrels per year will see their excise cut from $7 a barrel to just $3.50 on their first 60,000 barrels. For reference, Sierra Nevada produces roughly 1.25million barrels of beer per year. A barrel of beer contains 31 gallons, or roughly 308 12oz bottles of beer.

Newsweek reports that as much as 41% of the cost of a beer derives from excess tax. With that in mind, these cuts may make a bigger difference to price than it would seem on face value. Of course, these theoretical savings require breweries to pass on the savings to consumers.

The bill also includes provisions for lowering the excise on other alcoholic products, such as wine and hard liquor. As Republicans currently hold Congress, the Senate and the Presidency – and have been working hard to lower tax rates in many areas – it’s reasonable to assume that this bill will likely meet little, if any opposition.

Unfortunately, with the average bill taking more than 263.57 days to pass into law, our wallets wont see relief for some time.

So There You Have It

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