grehorst Posted February 19, 2011 Share Posted February 19, 2011 Distillers, Distillers-to-be, Industry Supporters. The Bill on which we have all been working so hard has finally been introduced to Congress and assigned #777. At this point we ask you all to contact your local Congressman and Senators requesting their support of this very important Bill. For your convenience we have prepared a letter that could be used when reaching out to your representatives. Feel free to use the letter as written, specific excerpts, or your own wording entirely, but please do circulate this letter in order to garner as much support as possible to keep the momentum going on this critical and much-needed legislation. –The ADI Legislative Committee _______________________________LETTER__________________________ The United States is in the midst of a resurgence in distilling, a craft that began with our founding fathers, George Washington, Thomas Jefferson, and others whose early 19th Century whiskey production helped revitalize the colonial economy following the Revolutionary War. Prohibition drove hundreds of distillers out of business or underground in the 1920s, and following repeal, only a few smaller operations were able to reestablish viable businesses in the face of competition from larger U.S. and international distillers. That situation has changed dramatically in recent years. Americans have built more than 150 craft distilleries in 40 states, learning the lost art forms, producing some of the world's finest spirits, and complementing other regional small businesses. Many small distillers are now building distribution networks with licensed wholesalers throughout the nation. One of the biggest impediments to our ability to grow and succeed is the federal excise tax on distilled spirits, currently at $13.50 per proof gallon. This regressive tax dates back to the second bill enacted by the U.S. Congress, which levied taxes on domestic and imported alcohol beverages. The tax applies to distillers of all size regardless of their profitability, making it a tremendous challenge for startup companies with limited capital and high initial costs for equipment, ingredients, and other business necessities. To provide some relief to this new class of American entrepreneurs, Congressman Hinchey of NY State has introduced H.R. #777, a bill that would reduce the federal distilled spirits excise tax rate to $2.70 per proof gallon for distillers that produce fewer than 65,000 gallons annually. This discounted tier structure mirrors what the small beer and wine producers have enjoyed for decades and how that's helped micro brewers and small wineries to flourish throughout the country. This tax reduction will enable these small distilleries to invest in new equipment and provide new, high-quality and sustainable jobs in communities across the United States. If you are interested in joining in this effort to provide needed tax relief to these new American enterprises or if you would like additional background information, please contact Kristin Cook at Congressman Hinchey's Office. Kristin.email@example.com Link to comment Share on other sites More sharing options...
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