[Congressional Record Volume 145, Number 51 (Wednesday, April 14, 1999)]
[Senate]
[Page S3709]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM:
  S. 801. A bill to amend the Internal Revenue Code of 1986 to reduce 
the tax on beer to its pre-1991 level; to the Committee on Finance.


                         Repealing The Beer Tax

  Mr. SANTORUM. Mr. President, I rise today to introduce legislation 
pertaining to the federal excise tax on beer.
  Many people are not aware that they pay enormous hidden taxes when 
they purchase any number of consumer products. The beer tax is one 
significant example of such a hidden tax. Bearing a disproportionate 
tax burden, forty-three percent of the cost of beer is comprised of 
both state and federal taxes.
  The federal government doubled its tax on beer eight years ago. 
Today, though it is one of the more regressive taxes, the 100 percent 
beer tax increase remains as the only ``luxury tax'' enacted as part of 
the 1991 Omnibus Budget Reconciliation Act. While taxes on furs, 
jewelry, and yachts have been repealed through subsequent legislation, 
the federal beer tax remains in place with continued far reaching 
effects, including the loss of as many as 50,000 industry jobs. My 
legislation seeks to correct this inequity and will restore the level 
of federal excise tax to the pre-1991 tax rate.
  Mr. President, I offer this bill as companion legislation to H.R. 
1366 introduced by Representative Phil English.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 801

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. REPEAL OF 1990 TAX INCREASE ON BEER.

       (a) In General.--Paragraph (1) of section 5051(a) of the 
     Internal Revenue Code of 1986 (relating to imposition and 
     rate of tax on beer) is amended by striking ``$18'' and 
     inserting ``$9''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act.
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