[Congressional Record Volume 152, Number 55 (Tuesday, May 9, 2006)]
[Senate]
[Pages S4208-S4209]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        COSPONSORSHIP OF S. 722

  Mr. BURNS. Mr. President, I rise today to express my support for 
legislation introduced in the Senate which has a significant impact on 
more than 800 small businesses in Montana and hundreds of thousands 
more around the country. S. 722 would reduce the tax burden on every 
barrel of beer, which currently stands at $18. Prior to 1991, this tax 
was only half of the cost today.
  This tax was originally enacted as a means to pay for the U.S. Civil 
War. The lesson is that there is no such thing as a short-term tax. The 
tax on beer, which accounts for 44 percent of a bottle of beer and a 
whopping 80 percent cost of a six-pack, has been steadily increasing 
since 1991.
  The taxation of beer falls unfairly on Montanans who can least afford 
to pay it. A report by Citizens for Tax Justice indicates that people 
whose family's income is in the top 20 percent pay five times less in 
excise beer tax than those whose family is in the bottom 20 percent.

[[Page S4209]]

  The Tax Code was intended to raise revenue for the Federal 
Government. It should not be used to influence behavior or personal 
choice. This excessive tax on beer is not efficient at raising revenue, 
and the cost of each dollar imposed is much greater in terms of jobs 
lost and economic drag.
  There are, of course, concerns about the social costs of alcohol 
consumption. I am very sensitive to those concerns and am encouraged by 
the reductions in drunk driving and alcohol abuse. But the fact is, 
this tax punishes all beer consumers instead of the minority who act 
dangerously. In any case, these problems must be addressed directly 
through specific legislation rather than indirectly through the Tax 
Code, which is already complicated enough.
  Mr. President, because this tax has grown so much since 1991 and 
because it not only affects beer wholesalers and resellers but hard-
working Montanans who enjoy these products responsibly, I am pleased to 
cosponsor this legislation in the Senate.

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