(This abstract was borrowed from another version of this item.)"> (This abstract was borrowed from another version of this item.)">
[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/320679.html
   My bibliography  Save this article

Beer Excise Taxes and the Craft Beverage and Modernization Tax Reform Act

Author

Listed:
  • Brester, Gary W.
  • McCullough, Michael
  • Atwood, Joseph
  • Austin, Caroline
Abstract
In December of 2017, the Craft Beverage and Modernization Tax Reform Act (CBMTRA) initially lowered Federal beer excise taxes for a period of two years. At the end of 2019, Congress extended the legislation through December 31, 2020. The Taxpayer Certainty and Disaster Tax Act of 2020 made the reduction permanent. The intent of the CBMTRA was to encourage investment in the craft (micro) brewing industry. We evaluate the ramifications of the CBMTRA on producers, consumers, and tax receipts, as well as quantify potential differential effects between the micro, regional, and macro brewing sectors. We also quantify the impact of excise tax reductions on input suppliers including barley, labor, non-labor, and equity capital providers. Although the per barrel excise tax reduction was supposed to primarily support the micro brewing sector, we find that the CBMTRA actually provided a larger benefit to the regional and macro brewing sectors.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Brester, Gary W. & McCullough, Michael & Atwood, Joseph & Austin, Caroline, 2023. "Beer Excise Taxes and the Craft Beverage and Modernization Tax Reform Act," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
  • Handle: RePEc:ags:jlaare:320679
    DOI: 10.22004/ag.econ.320679
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/320679/files/JARE320679.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.320679?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Congressional Budget Office, 2020. "The Budget and Economic Outlook: 2020 to 2030," Reports 56020, Congressional Budget Office.
    2. Victor J. Tremblay & Carol Horton Tremblay, 2005. "The US Brewing Industry: Data and Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262201518, April.
    3. Olivier Bargain & Andreas Peichl, 2016. "Own-wage labor supply elasticities: variation across time and estimation methods," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-31, December.
    4. Kym Anderson, 2010. "Excise and Import Taxes on Wine vs Beer and Spirits: An International Comparison," Wine Economics Research Centre Working Papers 2010-05, University of Adelaide, Wine Economics Research Centre.
    5. Caitlan Russell & Corne van Walbeek, 2016. "How does a Change in the Excise Tax on Beer Impact Beer Retail Prices in South Africa?," South African Journal of Economics, Economic Society of South Africa, vol. 84(4), pages 555-573, December.
    6. Christian Rojas, 2008. "Price Competition In U.S. Brewing," Journal of Industrial Economics, Wiley Blackwell, vol. 56(1), pages 1-31, March.
    7. Jeff Luckstead & Stephen Devadoss, 2021. "Taste renaissance, tax reform, and industrial organization of the beer industry," Economic Inquiry, Western Economic Association International, vol. 59(4), pages 1702-1722, October.
    8. Kym Anderson (ed.), 2019. "The International Economics of Wine," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 11327, December.
    9. Caitlan Russell & Corne van Walbeek, 2016. "How does a change in the excise tax on beer impact beer retail prices in South Africa?," SALDRU Working Papers 162, Southern Africa Labour and Development Research Unit, University of Cape Town.
    10. Koen Deconinck & Eline Poelmans & Johan Swinnen, 2016. "How beer created Belgium (and the Netherlands): the contribution of beer taxes to war finance during the Dutch Revolt," Business History, Taylor & Francis Journals, vol. 58(5), pages 694-724, July.
    11. Congressional Budget Office, 2020. "An Update to the Economic Outlook: 2020 to 2030," Reports 56442, Congressional Budget Office.
    12. Caitlan Russell & Corné van Walbeek, 2016. "How does a change in the excise tax on beer impact beer retail prices in South Africa?," Working Papers 573, Economic Research Southern Africa.
    13. Kym Anderson, 2019. "Excise and Import Taxes on Wine Versus Beer and Spirits: An International Comparison," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 18, pages 437-459, World Scientific Publishing Co. Pte. Ltd..
    14. Toro-Gonzalez, Daniel & McCluskey, Jill J. & Mittelhammer, Ron, 2014. "Beer Snobs Do Exist: Estimation of Beer Demand by Type," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), pages 1-14.
    15. Vinish Shrestha & Sara Markowitz, 2016. "The Pass-Through Of Beer Taxes To Prices: Evidence From State And Federal Tax Changes," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1946-1962, October.
    16. Rojas Christian & Shi Tianji, 2011. "Tax Incidence When Quality Matters: Evidence from the Beer Market," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 9(1), pages 1-35, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nelson Jon P. & Moran John R., 2020. "Effects of Alcohol Taxation on Prices: A Systematic Review and Meta-Analysis of Pass-Through Rates," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-21, January.
    2. Rosa Maria Fanelli, 2018. "Have beer markets in European Union countries converged?," Economia agro-alimentare, FrancoAngeli Editore, vol. 20(3), pages 445-477.
    3. Ce Shang & Anh Ngo & Frank J. Chaloupka, 2020. "The pass-through of alcohol excise taxes to prices in OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 21(6), pages 855-867, August.
    4. Jeff Luckstead & Stephen Devadoss, 2021. "Taste renaissance, tax reform, and industrial organization of the beer industry," Economic Inquiry, Western Economic Association International, vol. 59(4), pages 1702-1722, October.
    5. Kym Anderson & Giulia Meloni & Johan Swinnen, 2019. "Global Alcohol Markets: Evolving Consumption Patterns, Regulations, and Industrial Organizations," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 26, pages 671-712, World Scientific Publishing Co. Pte. Ltd..
    6. Stacey, Nicholas & Mudara, Caroline & Ng, Shu Wen & van Walbeek, Corné & Hofman, Karen & Edoka, Ijeoma, 2019. "Sugar-based beverage taxes and beverage prices: Evidence from South Africa's Health Promotion Levy," Social Science & Medicine, Elsevier, vol. 238(C), pages 1-1.
    7. repec:lic:licosd:40118 is not listed on IDEAS
    8. Rajeev K. Goel & James R. Jones, 2022. "Managing the risk of COVID‐19 via vaccine passports: Modeling economic and policy implications," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2578-2586, September.
    9. repec:aei:rpaper:1008586598 is not listed on IDEAS
    10. Kym Anderson, 2019. "Australian Wine Industry Competitiveness: Why so Slow to Emerge?," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 12, pages 283-308, World Scientific Publishing Co. Pte. Ltd..
    11. David R. Agrawal & Ronald B. Davies & Sara LaLumia & Nadine Riedel & Kimberley Scharf, 2021. "A snapshot of public finance research from immediately prior to the pandemic: IIPF 2020," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 28(5), pages 1276-1297, October.
    12. Paul J. J. Welfens, 2020. "Trumps Wirtschaftspolitik und der Corona-Schock - Perspektiven für die USA [Trumps Economic Policy and the Corona Shock - Perspectives for the USA]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(11), pages 848-855, November.
    13. Anderson, Kym, 2020. "Consumer Taxes on Alcohol: An International Comparison over Time," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 42-70, February.
    14. Kym Anderson, 2019. "Excise Taxes on Wines, Beers and Spirits: An Updated International Comparison," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 19, pages 461-477, World Scientific Publishing Co. Pte. Ltd..
    15. Miguel Garza Casado & Britta Glennon & Julia Lane & David McQuown & Daniel Rich & Bruce A. Weinberg, 2020. "The Aggregate Effects of Fiscal Stimulus: Evidence from the COVID-19 Unemployment Supplement," NBER Working Papers 27576, National Bureau of Economic Research, Inc.
    16. Cockx, Lara & Meloni, Giulia & Swinnen, Johan, 2021. "The Water of Life and Death: A Brief Economic History of Spirits," Journal of Wine Economics, Cambridge University Press, vol. 16(4), pages 355-399, November.
    17. Kym Anderson & Signe Nelgen, 2011. "Wine's Globalization: New Opportunities, New Challenges," Wine Economics Research Centre Working Papers 2011-01, University of Adelaide, Wine Economics Research Centre.
    18. Anderson, Kym, 2020. "Evolving from a rum state: Australia’s alcohol consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    19. Luckstead,, Jeff & Devadoss, Stephen, 2022. "Taste Renaissance, Tax Reform, and Industrial Organization of the Beer Industry," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322138, Agricultural and Applied Economics Association.
    20. Anderson, Kym, 2020. "Evolving from a Rum State: Australia’s Alcohol Consumption," CEPR Discussion Papers 14761, C.E.P.R. Discussion Papers.
    21. Alexander J. Holmes & Kym Anderson, 2019. "Convergence in National Alcohol Consumption Patterns: New Global Indicators," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 25, pages 631-670, World Scientific Publishing Co. Pte. Ltd..
    22. Kym Anderson, 2010. "Reforming Taxes on Wine and Other Alcoholic Beverage Consumption," Economic Papers, The Economic Society of Australia, vol. 29(2), pages 197-199, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:320679. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.