Beer Excise Taxes and the Craft Beverage and Modernization Tax Reform Act

Gary W. Brester, Michael McCullough, Joseph Atwood and Caroline Graham Austin

No 310391, MSU Staff Papers from Montana State University > Department of Agricultural Economics and Economics

Abstract: In December of 2017, the Craft Beverage and Modernization Tax Reform Act (CBMTRA) initially lowered Federal beer excise taxes for a period of two years. At the end of 2019, Congress extended the legislation through December 31, 2020. The Taxpayer Certainty and Disaster Tax Act of 2020 made the reduction permanent. The intent of the CBMTRA was to encourage investment in the craft (micro) brewing industry. We evaluate the ramifications of the CBMTRA on producers, consumers, and tax receipts, as well as quantify potential differential effects between the micro, regional, and macro brewing sectors. We also quantify the impact of excise tax reductions on input suppliers including barley, labor, non-labor, and equity capital providers. Although the per barrel excise tax reduction was supposed to primarily support the micro brewing sector, we find that the CBMTRA actually provided a larger benefit to the regional and macro brewing sectors.

Keywords: Agribusiness; Crop Production/Industries; Production Economics (search for similar items in EconPapers)
Pages: 40
Date: 2021-04-07
References: View references in EconPapers View complete reference list from CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Beer Excise Taxes and the Craft Beverage and Modernization Tax Reform Act (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:msaesp:310391

DOI: 10.22004/ag.econ.310391

Access Statistics for this paper

More papers in MSU Staff Papers from Montana State University > Department of Agricultural Economics and Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().