Makers of hard cider are among the likely winners as the US Senate Finance Committee prepares to vote this week on a package of tax breaks.
The committee Monday announced that it will consider 17 bills on Wednesday, and the variety in the measures is a reminder of how the US tax code reaches into every corner of the economy.
Cider makers would benefit from an expansion of the definition of hard cider, which is taxed more lightly than wine or champagne. Under the proposal, cider could contain as much as 8.5 per cent alcohol, up from 7 per cent under current law.
Cider produced from pears -- not just apples -- would become eligible for the cider tax rate under the proposal, which is supported by Senator Charles Schumer, a New York Democrat.
Companies that have reported lobbying on cider taxation in recent years include Anheuser-Busch InBev NV, Boston Beer Co. and Vermont Hard Cider Co., the maker of Woodchuck Hard Cider. The cider tax measure would cost the government an estimated $12 million over a decade.
“This is an opportunity for the committee to clear the deck and advance common-sense tax bills that have garnered strong bipartisan support within the Congress,” Senate Finance Chairman Orrin Hatch, a Utah Republican, said in a statement.
Bloomberg News, edited by ESM
