Push for Federal Excise Tax Increase on the Horizon?

Effort could come in this or next Congress, Miller lobbyist says.

WASHINGTON, D.C. -- Miller Brewing Company’s top lobbyist on Monday said he expects to see proposals for a federal excise tax increase get floated in this or the next Congress.

“We are certain to see an effort to raise our taxes in this or the next Congress,” Timothy Scully told an audience of Miller distributors gathered here for the National Beer Wholesalers Association legislative conference. “Our business can not take an increase in the federal tax and we urge you to help us with your members of Congress in building a strong coalition that (says) beer taxes should not be viewed as a budgetary fix.”

An increase in taxes could affect industry volume, profitability as well as employment, he said.

While there hasn’t been a serious proposal to increase excise taxes at the federal level in more than a decade, that could change, he said. Some advocacy groups are pushing for an increase.

These calls come at a time when Congress is grappling with deficits and newly adopted “pay as you go” rules, he pointed out.

The call for a coalition fits in with the “able challenger” governmental affairs strategy laid out by Nehl Horton, Miller’s executive vice president of communications and government relations.

Being an able challenger in the legislative and regulatory arena means being more strategic and focused than the dominant industry leader, he said. It also means reaching out to distributors on important issues and building coalitions.

“We seek consensus with you to be able to speak with one voice on public policy issues and leverage the collective power of the Miller system in the state houses and the halls of Congress,” he said.

Horton pointed to the passage of the STOP Underage Drinking Act, which involved a tremendous amount of collaboration between suppliers and distributors, as an example of this approach.

Initially, brewers and suppliers were not unified on what they wanted to accomplish. Ultimately, they were able to help pass a bill that addressed illegal underage drinking and preserved fundamental protections on marketing and selling beer. The act also contained language stating there was a national interest in a state-based system of beer distribution.