Beer and liquor lobbies press for cut in taxes

WASHINGTON -- The alcoholic beverage industry is pressing Congress to lower the federal excise tax on beer, wine and liquor -- just as several states are considering raising their "sin" taxes to help close budget deficits.

Already, more than 200 lawmakers seeking re-election -- many beneficiaries of the industry's political largesse -- have signed on to tax-cut proposals.

The beer lobby is portraying the beer tax as unfair to working-class Americans. A poster handed out on Capitol Hill features a pointing Uncle Sam sternly declaring, "I want half your beer," and says taxes take about 44 cents of every dollar spent on beer.

The poster promotes an Anheuser-Busch "Roll Back the Beer Tax" Web site featuring profiles of "Joe and Jane Six-Pack: The Average American Beer Drinkers," described as "young, average Americans, many of whom are raising a family.

"Beer is one of the simple pleasures of this group, a pleasure that most often is enjoyed -- responsibly -- at night, in the home. Lowering the beer tax means more money in the pockets of these young, hard-working men and women," the Web site said.

Industry lobbyists say that if the bills do not pass this year, they hope they'll be first in line the next time Congress considers tax cuts.

"There's lots of good reasons to pursue this legislation that go beyond getting it passed," said Frank Coleman, spokesman for the Distilled Spirits Council of the United States.

For example, if anyone suggests raising the federal excise tax on liquor, "you already have a solid bloc of people who say, 'Your taxes are too high and/or inequitable,'" he said.

The spirits tax cut proposal is sponsored by Rep. Ron Lewis, R-Ky., a Baptist preacher who doesn't drink. Lewis' district includes several bourbon distilleries, spokeswoman Kathy Reding said. About 100 lawmakers are co-sponsoring Lewis' bill.

Rep. Phil English, R-Pa., proposes cutting the beer tax in half, from the current $18 per barrel to $9, its 1990 level. That would save beer drinkers about 16 cents a six-pack. At least 223 lawmakers -- more than half the House -- have signed on to his legislation.

'A fairness issue'

English said the current economic slowdown is a good time to "pass back to a lot of working-class consumers a little bit of their tax money."

"I think this is a fairness issue," he said.

The beer tax was doubled in 1991 legislation that also raised the taxes on yachts and other luxury items, English said. Although many of those taxes were later rolled back, the beer tax remained at the higher level, he said.

Beer, wine and liquor interests have donated at least $3.7 million to congressional Republicans and national party committees and $2.6 million to their Democratic counterparts for this fall's election.