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Job creation — via the BEER Act

By Daniel Strauss - 03/10/11 09:22 AM ET

A bipartisan Senate duo has introduced legislation they say would create jobs, albeit through an unlikely means: beer.

Sens. John Kerry (D-Mass.) and Mike Crapo (R-Idaho) on Wednesday introduced the BEER Act — the Brewers Employment and Excise Relief Act — which reduces excise taxes on beer.

Kerry estimates the legislation would create jobs at many of the 1,600 small breweries across the country, which employ a total of 100,000 people. That includes several microbreweries in Massachusetts, such as Sam Adams, named for one of the Founding Fathers and a former governor of Massachusetts.

The bill cuts the tax on the first 60,000 barrels of beer produced from $7 per barrel to $3.50.

“This bill will help ensure that these small businesses keep people on the payroll and create jobs even during tight economic times,” Kerry said in a statement announcing the legislation.

The bill also would lower the tax rate on production over 60,000 barrels, to $16 per barrel. That, Kerry said, would leave brewers with $27.1 million more a year “that can be used to support significant long-term investments and create jobs by growing their businesses on a regional or national scale."

Additionally, the bill works to incentivize states to produce crops used in beer, like barley and hops.

The measure has 15 co-sponsors.

"I remain optimistic this bill will pass this year to create new jobs and new markets," Crapo said.


Source:
http://thehill.com/blogs/blog-briefing-room/news/148593-job-creation-via-the-beer-act

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