Spirits to benefit from Trump’s tax reform bill
US spirits producers have hailed a significant tax cut for the industry, announced as part of Donald Trump’s US$1.4 trillion tax reform bill.
Reforming the US tax code was a key pledge from Donald Trump in his campaign trail
The Senate passed the bill in the early hours of Saturday morning (2 December) with a 51-49 vote.
If signed into law, the bill – considered a significant victory for president Trump – will boost US corporations and the country’s wealthiest citizens with a US$1.4trn package of tax cuts.
Under the bill is a two-year version of the Craft Beverage Modernization and Tax Reform Act, which trade body the Distilled Spirits Council said “creates a more fair and equitable tax structure for brewers, winemakers, distillers and importers of all beverage alcohol”.
Kraig R. Naasz, president and CEO of the Distilled Spirits Council, commented: “The two-year version of the Craft Beverage Modernization and Tax Reform Act sponsored by Senator Rob Portman and contained in the Senate tax reform bill will create a fairer tax structure for all beverage alcohol.
“It will enable producers of distilled spirits to invest back in their businesses and communities across the United States.
“Distilled spirits are among the most highly taxed consumer goods in the United States and we support the enactment of pro-growth, comprehensive tax reform. The council commends the Senate for its efforts to create a simpler, more competitive and equitable tax system through the Tax Cuts and Jobs Act.”
Speaking in September this year, Luther Strange, Alabama’s senator, said the Craft Beverage Modernization and Tax Reform Act would provide domestic brewers and distillers who produce less than 60,000 barrels a year with a 50% reduction on federal tax.
