Oregon distilleries ask Congress for help ahead of 400% increase in federal excise taxes
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PORTLAND, OR (KPTV) — COVID-19 restrictions have had a big impact on a lot of people, including restaurants and breweries across the state.
On Tuesday, distillery owners called on Congress to help, as starting Jan. 1, 2021, the industry and other craft beverage makers could see a 400 percent increase in federal excise taxes.
There are 65 small distilleries in Oregon that employ thousands of people—but with the shutdowns, the business has been slow.
The owner of New Deal Distillery in southeast Portland is calling on Congress to make changes to the tax law to give some permanent relief, joining other owners across the state.
Oregon congressman Ron Wyden sent a letter along with 49 other senators to senate leadership on Tuesday to pass legislation that would help the industry and get rid of the excise tax. Those in the craft distillery industry say it would be helpful in what is already a tough year.
“It has been, it has definitely been a challenging time,” Tom Burkleaux, owner of New Deal Distillery, said. “March, April, May was very frightening. I am also on the board of the Oregon Distillers Guild and we did a survey, some people saw drops from 50 to 70 percent.”
Though things have improved some from last spring, tasting rooms are now closed, with many businesses selling products online with curbside pickup.
Distillers across the county are also calling on Congress to support the Restaurants Act, which will help with payroll and other expenses to help the hospitality industry recover.
Distilleries are also calling for a suspension of tariffs. They point to tariffs enacted by the European Union in 2018, in which the U.S. exports of American Whiskey dropped 41 percent.
Wyden’s office says craft distilling in Oregon supports more than 18,000 jobs and has a $1.6 billion economic impact.
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