Ever wonder where half your paycheck goes every week? If you live in a city full of bars with craft cocktails and Uber service, it's not a mystery. But a new proposed tax bill could make your future martinis a lot cheaper.
Rep. Todd Young (R-Ind.) and Rep. John Yarmuth (D-Ky.), introduced a bipartisan bill to cut federal excise taxes on distillers. The bill, called the Distillery Innovation and Excise Tax Reform Act, is aimed at helping large and small distilleries grow with reduced taxes.
If passed, this could mean cheaper cocktails at a bar near you, and cheaper bottles of liquor at the liquor store.
"All around southern Indiana, many new craft distilleries are popping up, creating jobs and adding to the tax base,” said Young in a statement on his website. “But there’s a lot of red tape involved in getting a new distillery off the ground, and this bill helps reduce that burden."
Under the proposed bill, the current tax rate of $13.50 per proof gallon of liquor would be reduced to $2.70 per proof gallon for the first 100,000 gallons produced at all distillers. After the initial 100,000 gallons, the tax per proof gallon would raise to $9.
The Distilled Spirits Council, which represents almost 120 small distiller affiliate members and the American Craft Spirits Assn., which represents more than 300 small distillers around the country, are in full support of the bill.
"It is significant that the distillers of all sizes are united behind this important hospitality industry legislation," said Distilled Spirits Chief Executive Peter Cressy in a statement.
Since the bill was newly proposed, we'll just have to wait and see if it passes. We'll keep you posted on its progress. Until then, cheers.
Sometimes a lush but always classy about it. Follow me on Twitter @Jenn_Harris_