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Beer Institute helps fight tax hike.

Beer Institute helps fight tax hike

Peter Coors, president, Coors Brewing Co., and new chairman of the Beer Institute, announced that the brewing industry has begun a comprehensive advertising and grassroots campaign to fight a potential increase in beer excise taxes.

A major component of the campaign is a full-page newspaper advertisement which appeared last week in 65 hometown papers of Congressional participants in the budget summit negotiations. The ad urged policy makers to give middle-income Americans a fair break. It shows a woman's hand wearing a diamond bracelet and holding a can of beer.

"Riddle: What's the difference between a diamond bracelet and a can of beer?" asks the ad's headline.

The answer: "You pay more excise tax on the beer."

The copy goes on to explain that Congress repealed excise taxes on luxury items like jewelry, furs and perfumes more than 20 years ago. Beer, however, continues to be taxed at three times the rate of most other consumer products, and the amount of taxes on a can of beer exceeds the combined costs of its ingredients and labor to brew the beer. The ad also encourages consumers to call a toll-free number (1-800-33-TAXES) to send an anti-tax message to member of Congress.

"The members of the brewing industry are concerned about the budget deficit, but no solution should place an unfair burden on working Americans," Coors explained. "There always seems to be a temptation to look to taxes which can be hidden in the price of consumer goods as an easy way out of a revenue crunch, but we're urging Congress to remember who ultimately pays these tax bills and not to sacrifice fairness to political expediency."

Coors noted that excise taxes on beer eat up three times as much of the income of a worker earning $10,000 to $20,000 per year as they take from someone earning more than $50,000 per year. "Adding $4 to $5 to the price of a case of beer is unfair to many of our customers," Coors said.
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Title Annotation:beer excise taxes
Publication:Modern Brewery Age
Date:Jul 23, 1990
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