There’s a great little brewery called Original Gravity in the little town of Milan, south of Ann Arbor, where I live. In one of those survivalist tales so common throughout Michigan, a former Big Three auto engineer chucked it all a while back and decided to serve his own beer for a living. The place makes great ales, porters, and ambers and my five-year-old daughter loves to sip on the homemade root beer while beating me at the board games in the back corner. You’d have to pour gallons of that beer down my throat to get me silly enough to agree to the notion that a tax of a few pennies or even a big old quarter per glass of that Original Gravity beer would have even the slightest negative impact on sales. But that’s not what the Michigan Brewers Guild said in Lansing this week. In fact, the “chief imagination officer” for one West Michigan brewer reportedly let his imagination get a little wild in discussions with lawmakers. Brewers predict lost sales and lost jobs and all kinds of doom and gloom if — gasp!!! — legislators grew strong enough spines to overcome the objections of the well-heeled alcohol lobby and, indeed, touched beer taxes for the first time since 1966 (when they were lowered). As The Center for Michigan outlined in August, national statistics suggest very little correlation between beer tax rates and consumption rates. Keep tapping those kegs, dear Michigan brewers, and don’t worry. Legislators aren’t likely to get creative enough to raise the beer tax any time soon and, even if they did, the only place you’d feel it is in your most paranoid nerve endings.
Bridge FeedMake A Donation
6 Comments
Absolutely right, beer drinkers would never hesitate to pay an extra quarter or dime to have a beer, what the brewers charge for micros is highway robbery anyway….the fact is they want to make that as a profit
In Michigan, beer is everywhere. Look in any grocery store, where one or more aisles is devoted exclusively to beer sales.
With that kind of volume of sales each day, week or month, an increase in the beer tax would add needed revenue to keep critical services from disappearing.
Beer drinkers are a patrioic bunch. If they see that the slight increase in beer tax will help our Great State of Michigan, I think that they will step up as a matter of pride!
Dear Mr. or Mrs. Center (?),
First, I am not sure who crafted this blog, but I can only assume it must be an official position as the author is listed as “center”. It is also unfortunate that you would make light of such a serious issue that faces a growing sector of business in Michigan by inferring that we are paranoid over potential threats to our businesses. I believe it calls into question the seriousness and credibility of your organization.
Further, your over simplification of the tax issue shows your ignorance to the plight of the small brewer in Michigan. To suggest that because you go to a local brewery and are willing to pay more for their product means that all Michiganders are willing to pay more is beyond any type of scientific extrapolation. I have to wonder how many Michigan brewers you talked with that were supportive of an increase in the state’s excise beer tax. I can reasonably assume that the answer would be “none”.
The fact remains that small brewers are strapped. We face rising costs on all fronts. In fact, in 2009 we saw an average increase in our hop pricing alone of over 50%. Yet in spite of these challenges we continue to make grow and continue to educate the consumer as to why they should choose our local Michigan products over products that are made overseas or from another state. (I am trusting that the “Center” has an understanding of why buying local helps Michigan workers and families.) It is beyond me why a “Center for Michigan” would want to put a further burden on businesses that are the heart and the “center” of Michigan communities. Our family owned manufacturing businesses are models for what Michigan needs now. We should be working to remove any bureaucratic obstacles that impede on our success – not put up more barriers!
For the reasons stated above, I am officially removing my support for your “think tank”. Lest you think that this is just an offhand remark, it should be noted that I have participated in and even hosted a gathering of likeminded small business leaders at my establishment for an official “Center for Michigan” survey and presentation.
In closing, there are many factors that contribute to a healthy small brewery scene and Michigan is fortunate to have many of those factors in our favor. While Michigan has an average beer tax when compared to the national average, it does in fact suffer a competitive disadvantage when compared to all three of our neighboring states, all of which have a tax that is less than Michigan’s. If we really wanted to help Michigan small businesses compete, lowering the Michigan beer excise tax would be a great way to create jobs and revenue for its citizens.
Sincerely,
Brett VanderKamp
President and “Chief Imagination Officer”
New Holland Brewing Company
Perhaps the funds used by the beer industries for lobbying efforts would have to be trimmed to offset the huge loss of revenue they claim a tax increase would create.
Seems millions spent for lobbying is okay for them, but not for a tax on this necessity. Seems the cash has been flowing to the legislators and not the general fund. It is time to RE-ELECT NO ONE!
Yes, there is beer in my refrigerator.
We have some of the best brewed beer made here in Michigan without
a doubt,and worth the price we pay
versus whatever swill that gets trucked in all over from the rest of the states and other countries.
Let’s put a stop to the “outside lobbyist’s” funding the politicians
and use that “special interest” group’s money as tax revenue.Then put a nickel or two in taxes on beer imported from other states.Of course then we could give the sorely needed tax relief to our in state brewers.Yep,like Paul above there is and will continue to be beer in my fridge too.
Thank you Mr. VanderKamp for your post. Another example of people/companies who think that others should cover them so they don’t have to do their fair share. I’ll keep an eye out for your brews on my next shopping trip and be sure to leave them on the shelf. It’s easy to choose to purchase from a company that shows some responsibility and not to purchase from one that doesn’t.