Analysis seminar: Beer consumption taxes and the Craft Beverage and Trendy Taxation Tax Reform Act

Michael McCullough, Professor of Agriculture at Cal Poly, will present “Beer Excise Taxes and the Craft Beverage and Modernization Tax Reform Act” at Linfield Hall 406 on Thursday, August 26th at 3:15 pm.

Summary: In December 2017, the Craft Beverage and Modernization Tax Reform Act (CBMTRA) cut federal excise tax on beer for a period of two years, and the Taxpayer Certainty and Disaster Tax Act of 2020 made the cut permanent. Researchers assess the impact of the CBMTRA on producers, consumers and tax revenues, and quantify potential different effects between the micro, regional and macro brewery sectors. Although the per-barrel excise cut was primarily intended to support the microbrewing sector, we find that the CBMTRA brought greater benefits to the regional and macro brewing sectors.

The Regulation and Applied Economic Analysis Initiative funded the research. Co-authors of the paper are Professor Emeritus Gary Brester, Joe Atwood, Professor at the Department of Agricultural Economics and Economics, and Caroline Graham Austin, Professor at Jake Jabs College of Business and Entrepreneurship.