Support for a proposal to reduce the excise tax on American-made beer but not on foreign-made beer provides an interesting juxtaposition on the tariff debate.

One of the main arguments against the United States imposing tariffs is that other countries retaliate with their own tariffs, which impacts exports of American-made goods. One could argue that reducing the excise tax on American-made beer is the same as imposing a tariff on foreign-made beer, but in this case, some American companies support the tariff-like legislation.

The Kansas excise tax on American-made beer and cereal malt beverages would be reduced from $0.18/gallon to $0.06/gallon under House Bill 2714, which was debated in the House Committee on Taxation. The gallonage tax of $0.18 would remain on foreign imports of the beverages.

Among supporters of the legislation was Adam Kazda with Anheuser-Busch, who saw the bill as “leveling the playing field” for American breweries:

“America’s beer production is shifting rapidly to Mexico. And with alarming consequences for our economy and communities. Over the last 20 years, the percentage of beer imported into America has more than doubled. Growing from 11% to 24%. Of those beers imported, 80% originated from Mexico, where beer is far cheaper to produce.

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