[Congressional Record Volume 142, Number 117 (Friday, August 2, 1996)]
[Extensions of Remarks]
[Pages E1497-E1498]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         REPEAL OF THE BEER TAX

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                          HON. RICHARD E. NEAL

                            of massachusetts

                    in the house of representatives

                         Friday, August 2, 1996

  Mr. NEAL of Massachusetts. Mr. Speaker, today I am introducing 
legislation which would reduce the excise tax on beer from $18 to $9 a 
barrel. The Omnibus Reconciliation Act of 1990 doubled the excise tax 
on beer to $18 a barrel. The Omnibus Budget Reconciliation Act of 1990 
included provisions commonly referred to as ``luxury taxes'' on high-
priced items such as boats, furs, and automobiles. All of these luxury 
taxes have been reviewed by Congress. For example, today we passed the 
Small Business Job Protection Act of 1996 which includes a phaseout of 
the luxury automobile excise tax. The automobile excise tax is the last 
luxury tax still in effect.
  I believe it is time for Congress to look at a repeal of the beer 
tax. The tax increase of 1990 doubled the tax on beer. Currently, 
consumers pay 32.6 cents per six pack. This legislation would reduce 
the tax to 16.3 cents a six pack. The beer tax is an example of an 
excise tax which affects the average working American.

[[Page E1498]]

  Congress has repealed and reviewed the luxury taxes which mostly 
affect the wealthiest of all Americans. We should now review a repeal 
of the increase on the excise tax on beer. This type of excise tax is 
regressive and it affects the average American. If we can repeal excise 
taxes on items that affect the wealthy, we should look at items that 
affect the average working person. Forty-three percent of the cost of 
beer is taxes. This is simply too high.
  Lately, there has been a lot of talk about tax reform and tax 
fairness. Repealing the excise tax on beer would help make the Tax Code 
more fair. Mr. Speaker, I urge Congress to take another look at the 
beer tax.

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