Economic Benefits from a Graduated Federal Excise Tax for Small Brewers
An economic impact study by Dr. John Friedman of Harvard University on H.R. 1236 and S. 534 found that the bills would generate approximately $153 million in economic activity in the first year and almost $865 million over five years. Federal tax revenue would fall by $14.5 million in the first year and only $81.9 million over five years. The study concludes that over five years such a recalibration would generate more than 4,400 jobs in the first year and an average of 300 jobs in each of the subsequent years.
Excise Tax Impact – H.R. 1236 & S. 534 
The following chart summarizes the potential benefit for the impacted barrelage tiers. Note that brewers over 60K barrels benefit at both the less than 60K proposed tax rate and the 60K to 2 million barrel tax rate:
| Barrels | Total Barrels | Total Industry Current Tax |
Total Industry Proposed Tax |
Savings |
| < 60K | 6,023,880 | $45,406,775 | $21,713,388 | $23,693,387 |
| 60 K - 2 M | 15,828,845 | $263,680,200 | $234,382,400 | $29,297,800 |
| 2M - 6 M | 3,173,000 | $75,114,000 | $75,114,000 | $0 |
