WASHINGTON, D.C.— Liberals may ‘wine’ about the Tax Cuts and Jobs Act but American workers and businesses already see the good news brewing, including distilleries, wineries, and breweries that see massive tax cuts. Even though the bill has ‘barley’ been signed into law, these companies have already pledged to hire more workers and invest more back into their businesses.
As you raise a glass to the new year, mull over how tax reform is already causing a bubbling economy:
- Michael L. Aubertine is looking forward to upgrading his Clayton Distillery using the extra revenue he’ll have due to the excise tax reduction for spirits from the federal tax reform bill.
- Mr. Aubertine, who co-owns the Clayton Distillery, pays about $40,500 in excise taxes annually for the 3,000 gallons of spirits he produces at $13.50 per proof gallon. The tax reform, however, will reduce his expense to about $8,100 when it takes effect in 2018, which encouraged him to install upgrades to his facility at 40164 Route 12. “We’re basically investing back into the business,” he said. “The tax plan — it also lets us write off some of the supplies a little bit differently.”
- Brewer Michael J. Hazlewood, who owns the Wood Boat Brewery in Clayton, said he may increase production and hire more employees for his brewery and restaurant, 625 Mary St., because of the excise tax reduction he’ll receive. Mr. Hazlewood pays about $3,800 in excise taxes annually for the 17,000 gallons, or about 550 barrels, of beer he produces, but the reform would reduce his yearly excise tax cost to about $1,900.
- “All of this help from the government these brewers and craft business are getting is going to help employ a lot of people,” he said, adding that excise tax reductions may also help inspire more people to open breweries. “I think it’ll be a better industry all the way around.”
- “This is a big deal for the wine industry,” Says Dave Miller, White Pine Winery owner. He says over the past few days his email has been flooded with news of the tax bill…he says business has been good this year, and he plans on planting more grape vines this spring.
- According to the Wine Institute, which represents a thousand wineries, this is the first wine excise tax reduction in 80 years. It says the bill will help grow wineries across the country.
- For Philip McDaniel, who founded a distillery in St. Augustine, Florida four years ago, that means savings of about $150,000 next year. He says he’ll put the money toward hiring more people and buying more equipment — for as long as the tax break lasts. “We’re going to try and make and sell as much as we can to take advantage of it,” McDaniel says. “Hopefully they’ll see the growth, and perhaps they will have the wisdom and the heart to extend it another two years.”
- “Your first five years are when you’re trying to earn every penny,” says Julie Verratti, who co-founded Denizens Brewing Company in Silver Spring, Maryland in 2014 with a business loan backed by her own house. She estimates the tax break will save her $6,000 in 2018. “Every single bit of that goes back into the business.”
- “Little wins for us are great things,” says Robert Cassell, the owner of New Liberty Distillery in Philadelphia. “And this is a big win.”
To see the growing list of companies increasing wages, investments, jobs, and bonuses because of the Tax Cuts and Jobs Act, click here.