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Tax and regulatory certainty help grow Nebraska small business • Nebraska Examiner

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Tax and regulatory certainty help grow Nebraska small business • Nebraska Examiner

When we opened our distillery, we were fully prepared to compete in a free market environment. We had then, and continue to have, a high level of confidence and pride in the products we distill and distribute.

But make no mistake, small businesses like ours lack the size to employ a multitude of lawyers and lobbyists like our largest competitors employ. The complexity of the regulatory environment and the resulting uncertainty in the marketplace give additional advantages to large, multinational hard liquor producers.

We’re brewers and distillers. We know beer, cider and whiskey. We shouldn’t have to be experts on the tax code or federal and state regulations – although we are committed to compliance. And if their complexity weren’t enough, the fact that they are always changing brings uncertainty that serves as a hurdle to growth. Small business owners like us need market certainty so we can focus on running our businesses. I’d rather hire more workers to serve customers than lawyers.

Still, the fight to level the playing field often seems like a never-ending struggle. Nowhere is this more evident than in the brewing controversy surrounding the proposed tax breaks for big liquor companies at the expense of small distilleries. Legislation in Washington could tip the scales even further in favor of big industry players.

At the heart of this issue lies the fundamental principle of fairness. While big liquor corporations enjoy the fruits of tax breaks and subsidies, their smaller counterparts are left to fend for themselves. These tax breaks, if approved, threaten to destabilize the marketplace, jeopardizing the livelihoods of small distilleries that contribute to our local economies.

The hard liquor special interest lobby, with its deep pockets and extensive influence, is once again flexing its muscles in Washington. Legislation like S.1781 and H.R. 4073 in Congress represents the latest attempt to further expand trade and tax policy in favor of multi-national liquor companies, essentially creating a zero percent effective tax rate for certain imported spirits products. These measures are being quietly pushed through the legislative process, in hopes they will slip under the radar unnoticed.

Proponents of these bills – and their lobbyists – want to amend them into so-called “must pass” legislation to avoid stand-alone votes.  Not only would these tax bills destabilize the marketplace but amending them into “must pass” legislation undermines the transparency and integrity of the legislative process.

Small distilleries not only provide jobs and pay taxes but also contribute to the sense of community in our neighborhoods and small towns. They are the embodiment of the American dream, where hard work and innovation are rewarded with success.

And make no mistake, I support limited government, lower taxes and a tough but fair regulatory environment. But the proposed tax breaks would only serve to widen the gap between big liquor and small distilleries, further entrenching the unfair advantage enjoyed by the former.

It’s imperative that our elected officials recognize the impact of their actions. Nebraskans deserve a transparent and honest legislative process, not backroom deals that destabilize the marketplace, giving new competitive advantages to multinational liquor companies. If our voices are heard, I’m optimistic our federal delegation will side with small distilleries and the economic well-being of our communities.

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