There has been a great deal of focus on bars and restaurants as victims of government policies. Lost are those businesses downstream that supply these businesses. Often they are equally impacted.

Oregon Breweries wineries, cideries and distilleries are an essential part of Oregon’s economy and identity. Prior to the COVID-19 outbreak, Oregon was home to 400 breweries, 73 distributors, and 37,200 farms, creating thousands of good-paying jobs and several billion dollars in wages. Many of those jobs are now at risk or have been lost.

The last thing these homegrown businesses need is a tax increase. Tax increases only make it harder for these businesses to invest in rehiring, equipment, upgrades and expansion, and will result in higher prices for consumers.

Oregon brewers help create 43,000 jobs and $2 billion in wages each year. Unfortunately, more than 10,000 of those jobs are expected to be lost because of COVID-19 closures. We’ve already seen dozens of our local breweries shutter. These statistics tell the story.

• Oregon beer generates nearly $6.7 billion dollars in economic output and nearly $1 billion in taxes.
• As many as 20% of craft breweries are unsure they will be able remain open because of COVID-19.
• Because of COVID-19, it’s estimated Oregon beer sales will have decreased by $284 million in 2020.

The tone deafness of this tax increase at this time was not lost on one lobbyist for a distribution company. "Even Kate Brown realizes that this is going to be too hard on the industry." Opponents of the tax have a website prepared called DontTaxMyDrink.org. A legislative bill has yet to surface.

The idea for the tax increase is reportedly the brainchild of Mike Marshall, the co-founder and director of Oregon Recovers, which describes itself as "an inclusive statewide coalition comprised of people in recovery–and their friends and family—uniting to transform Oregon healthcare to ensure world-class prevention, treatment, and recovery support services for Oregonians suffering from the disease of addiction."

Marshall, who is no stranger to politics, directed Governor Kitzhaber’s 2014 reelection campaign, before helping to found Oregon Recovers. Some insiders have commented that the tax idea is a little bit outside the mission for the organization.


--Staff Reports

Post Date: 2021-02-09 12:30:05

Last Update: 2021-02-09 18:45:48