House Republican Todd YoungTodd YoungOvernight Cybersecurity: Senate takes a hard line on Russia | Dems want hearings on Trump's cyber issues GOP lawmakers urge Trump to get tough on Russia Senators to Trump: We support additional Iran sanctions MORE (Ind.) has introduced legislation to reduce the excise tax on vodka, rum, gin and whiskey.
Excise taxes are paid when purchases are made on a specific good and often included in the price of the product.
The Distillery Innovation and Excise Tax Reform Act unveiled Tuesday would drop the current tax rate for distilled spirits from $13.50 per proof gallon to $2.70 per proof gallon on the first 10,000 gallons of productions for all distillers and then $9 per proof gallon after that.
In a news release citing the Distilled Spirits Council and the American Craft Spirits Association, Young said more than half the purchase price of a bottle of spirits is used for taxes and fees, making it one of the most heavily taxed products in the country.
“All around southern Indiana, many new craft distilleries are popping up, creating jobs and adding to the tax base,” Young said. “But there’s a lot of red tape involved in getting a new distillery off the ground and this bill helps reduce that burden.”
Rep. John Yarmuth (D-Ky.) is co-sponsoring the legislation.
In a joint release, the Distilled Spirits Council (DISCUS) and the American Craft Spirits Association (ACSA) said the new rates in the proposed legisltion should apply to all distillers regardless of size and to imported spirits as well as domestic products.
ACSA President Tom Mooney from House Spirits in Portland, OR, said,
“This bill will help create jobs across America for the rapidly growing distilling industry,” ACSA President Tom Mooney, of House Spirits in Portland, Ore., said in a news release. “It will translate into real economic benefits and jobs for hundreds of small distillers and their surrounding communities.”