It has come to my attention that some legislators are considering a tax increase on alcoholic beverages as a means of funding special interest programs. A tax increase will be devastating for my company and for the well being of the Maine craft beer industry. We are in a period of serious inflation, particularly when it comes to commodity and food prices. My company’s costs have risen dramatically and rapidly for the food supplies for the brew pubs.
On top of that, agricultural pressures have wreaked havoc on the brewery supply chain. While we have seen 80 percent to 100 percent increases in the cost of the barley we use to produce our high-quality ales, we are pressed even more dramatically by the intense shortages of hops – the second-most key ingredient in our products.
Increasing the tax on beer will put our products out of range for many customers, which will actually have the opposite affect to the intention. Tax revenues will diminish, as customers (voters) purchase less of our product here in Maine. This always leads to that ugly two-word phrase, New Hampshire. Consumers already get a better deal in New Hampshire and this will further exacerbate the issue.
Maine people are already taxed to the point of breaking. Hopefully, legislators will carefully consider these very harmful effects and vote accordingly.
Richard Pfeffer, president
Gritty McDuff’s Brewing Company, Portland
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