Increases in excise taxes hurt our industry - brewers, distributors and retailers - our workers, our communities and the millions of people who consume our products responsibly.



Beer excise taxes are regressive, disproportionately inflicted upon lower- and middle-income Americans. In fact, the effect on households with the lowest incomes is 11 times greater than those with the highest incomes. Nearly 63% of beer in the United States is purchased by low- and moderate-income consumers and is taxed by all levels of government at a rate of more than 41 cents for every dollar spent.



By disproportionately affecting these individuals, increasing the beer excise tax would represent a tax increase on the middle-class American workforce, further increasing the burden on those paying more than ever to fill their gas tanks and their grocery bags.



Excise taxes on beer would have a serious impact on jobs and economic development in Wisconsin, an area where brewing is an important industry. In the state, there are more than 32,000 beer-related jobs in brewing, distributing and supply, and this number does not count the many thousands of jobs employed in our taverns, grocery stores and convenience stores selling beer. Nearly 34,000 more jobs exist in Wisconsin due to the induced impact of beer and beer sales. The excise tax increase under discussion would also negatively affect the total annual economic impact of the beer industry - nearly $7.7 billion - in Wisconsin.



And while many sectors of the Wisconsin economy have experienced layoffs, the brewing industry is thriving. In fact, the state produces far more beer than is consumed here. Brewers produced 173% more beer in Wisconsin than consumers in the state purchased, meaning that for each case of beer sold, another three six-packs were exported to other states or countries.



At a time when the economy is struggling and jobs are being lost, the beer industry stands out as a positive story of an industry committed to good-paying jobs, most with health benefits. Now is not the time to penalize the industry and put these economic benefits - or the livelihoods of so many people - in jeopardy.



Some have argued that higher excise taxes will deter alcohol abuse or illegal underage drinking or will help fund more programs to combat this negative behavior. Such arguments are misleading. Appropriating additional taxpayer dollars does not fully address the issue.



While excise taxes certainly drive down product sales, increases in excise taxes don't produce the desired effect of curbing abuse. Recent studies have shown that those who abuse alcohol or are underage and willing to break the law by illegally purchasing alcohol through third parties are rarely affected by price increases.



Increasing excise taxes for state taxpayers to defray the costs of services related to alcohol abuse is not the solution, either, as the services are not directed to the majority who responsibly enjoy beer. There are already millions of federal dollars going to each state, including Wisconsin, to fund prevention and treatment programs. A better approach would be to ensure that every dollar received is going to the most important prevention efforts needed in Wisconsin before asking taxpayers to provide more funding.



For many years, the beer industry has executed educational programs and responsible consumption campaigns, which have proved to be more effective in curbing alcohol abuse, including illegal underage drinking and drunken driving. In fact, every national indicator has shown a steady decline in alcohol abuse, illegal underage drinking and drunken driving over the past two decades. The beer industry will continue to play an active role by teaming with parents, educators, state and federal regulators, law enforcement officials and many others to implement effective programs.



As the beer industry has been one of the few sectors that have been relatively resilient in this challenging economic environment, Wisconsin needs it to be successful now, more than ever before. Every day, millions of residents are counting on the jobs and the income this industry provides. And every cent impacts the livelihoods of people in and outside the industry.



Tom Long is president and chief operating officer of MillerCoors. This article also was signed by Eric Jensen, executive director of Wisconsin Beer Distributors Association; Pete Madland, executive director of the Tavern League of Wisconsin; Brandon Scholz, executive director of the Wisconsin Grocers Association; Pam Christenson, public affairs director of Wisconsin Petroleum Marketers & Convenience Store Association; Russ Klisch, president of Lakefront Brewery; Patrick Weyer, president of Brewery Workers Local 9; and Ed Lump, executive director of the Wisconsin Restaurant Association.