WAUSAU, Wis. (WSAU) — There are two proposals in Washington D.C. that are designed to help the brewing industry, but according to a local craft brewer, one of them is a far better plan for small operations like his.
The Beer Act has been proposed to save excise taxes for brewers, but critics like Michael Zamzow of Bull Falls Brewery in Wausau say the Beer Act not only costs America 150 million dollars annually, it actually helps send profits to large, multinational companies that have been cutting jobs. Zamzow prefers another bill introduced by Senator Tammy Baldwin called the Small Brew Act.
Baldwin says the Small Brew Act she introduced in February cuts the excise tax on the first 60,000 barrels in half, which would allow small brewers to reinvest and grow. “Our proposal would cut it in half for the first 60,000 barrels that are produced, so obviously, big tax relief for the smaller-scale craft brewers.”
Baldwin says the Small Brew Act would help brewers like Bull Falls actually generate more tax revenue while growing. “The ability to invest in equipment, the ability to increase wages, the ability to grow, which ultimately, and I think this is the win-win situation, would result in greater tax revenues as you have more people at work and more economic opportunity.”
Zamzow currently produces about 4,000 barrels of beer annually. He says eliminating about half of the excise tax through the Small Brew Act would allow him to reinvest in the business, expand production, hire staff, and the government actually makes more tax money in the end. “I can therefore then make another say, 1,000 barrels of beer with it, which is going to generate more excise tax, more sales tax, it’s going to increase my corporate tax. Those taxes combined are going to be more than what I would have paid if I paid that higher excise tax in the first place.”
Zamzow believes the Small Brew Act would also level the playing field for the 90 plus craft brewers in Wisconsin, who currently pay a lot of taxes on their initial annual production. “I think it helps us compete in a better fashion, too, with the large companies that have a lot more resources than we do, so that’s what I think the small tax reduction will do for us. I think it’s going to create employment opportunities.”
Baldwin says the Small Brew Act costs taxpayers less up front, and they get more tax revenue in the end. Zamzow says more of that tax revenue stays in America by helping craft brewers instead of focusing on large corporate brewers based outside of the U.S.
Zamzow says cutting the excise tax from $7.00 per barrel to $3.50 per barrel would allow him to purchase an additional fermenter for the $17,500 dollars saved. In turn, that investment would yield 1,039 more barrels of beer annually. He says the sales of that extra beer will generate $34,513 in additional tax revenue.
Baldwin visited Bull Falls Brewery Tuesday after a stop at Northcentral Technical College, where she discussed student loan issues.
