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Trump tax cut ‘worth half-a-billion dollars to distillers’
US distillers will collectively save more than half-a-billion dollars over the course of two years as a result of a new break in excise tax, the trade has estimated.
The Distilled Spirits Council estimates Trump’s tax cut will be worth more than a half a billion dollars to US distillers over a two-year period
In its annual economic briefing yesterday, the Distilled Spirits Council reiterated its support for president Donald Trump’s package of tax cuts, which includes a two-year version of the Craft Beverage Modernization and Tax Reform Act.
The act equalises federal excise tax on spirits, wine and beer for the first 100,000 gallons produced annually.
Under the legislation, distillers will pay US$2.70 per proof gallon for their first 100,000 gallons produced in the calendar year.
“This historic tax cut will enable distillers to invest back in their businesses and communities, generate jobs and support agriculture and growing whiskey tourism,” said Kraig R. Naasz, president and CEO of the Distilled Spirits Council.
“Ensuring that the tax cut is continued beyond the two-year period will be a top legislative priority for the council in the coming years.”
The Senate passed the Trump administration’s US$1.4 trillion package of tax cuts in December.
It marked the first time that the US government had reduced taxes for spirits producers of all sizes for the first time since the Civil War.