CONGRESSIONAL UPDATE
HR 158, WHICH WOULD REDUCE FEDERAL EXCISE TAXES ON BEER (9/10/98)
Senate Majority Leader Trent Lott (R-MS) has made tax-cut
legislation a priority for congressional action before the end of the session. Efforts could be made to include HR 158, which would reduce the federal excise tax on beer to its pre-1991 level.
BACKGROUND
Federal excise taxes on beer were raised in 1991 for the first time in 40 years. The tax was raised from 16 cents per six-pack to 32 cents per six pack (or from $9 per barrel to $18). This did not occur because of public health considerations, but was part of the overall budget deliberations between President George Bush and the Congress. (See also the Action Alert sent March 17, 1997)
Reducing beer excise taxes is bad public policy. In fact, the
tax should be increased, because it is a proven means to reduce alcohol problems, particularly among young people. Last year, thirty organizations sent a letter to members of Congress asking them to oppose a proposed reduction in excise taxes and to choose America's kids over America's beer bellies.
The Beer Institute has run ads in the Washington Post in support of a rollback of the beer tax.
We must let Congress know that lowering beer taxes, or any other alcohol excise taxes, must not be considered.
WHAT YOU CAN DO
Copy this Action Alert to your members. Ask them, and their friends to contact:
Their U.S. Senators:
The Honorable --
U.S. Senate
Washington, D.C. 20510
Their U.S. Representative:
The Honorable
U.S. House of Representatives
Washington, D.C. 20515
Secretary Robert Rubin
U.S. Department of the Treasury
Washington, D.C. 20220
The message should include the following information:
+ Researchers find that alcohol taxes and prices affect
alcohol consumption and related problems.
+ Studies show that increased beer prices lead to reductions in the levels and frequency of drinking and heavy drinking among youth.
+ Higher taxes on beer are associated with lower traffic crash fatality rates, especially among young drivers.
+ Excise taxes should be INCREASED, not decreased, to help prevent alcohol-related problems. Six-packs of beer already costs less in some cases than an equivalent amount of soda.
If you have any questions, please contact the Public Policy Office via e-mail at publicpolicy@ncadd.org.