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Friday, July 16, 2010

Follow-up on beer tax relief ("the subsidy")

From the Seattle PI "Washington Beer Blog," this bit of support for the federal tax relief Joseph DiStefano was defaming (and misunderstanding) recently:
The estimated cost of the provision is about $44 million per year and less than $500 million over 10 years. A Harvard study of the Economic Impact of H.R. 4278 indicates that the bill would generate more than 2,700 new jobs over the first year to 18 months, followed by an average of 375 new jobs per year over the following 4 years. Each new job would cost less than $4,000 in foregone government revenue in 2010. According to the study, "Economic activity would increase by $10.91 per dollar lost in government revenue, making the bill an efficient use of government funds."
Sounds pretty damned good, doesn't it? And these are going concerns that are showing steady growth in a mature industry. Still some risk, but...that's damned near money in the bank. If the economy does double-dip, as fears are growing, maybe a different story, but it's going to be a different story for a lot of businesses, and why would you want high taxes on business in a recession anyway? Do this thing. And you, reader, tell your senators you'd like to see this happen.

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