The federal excise tax was first imposed during the Civil War as a temporary measure to support the Union army. Brewers paid a tax for each barrel of beer sold. In 1990, as part of the effort to balance the budget, taxes on beer and luxury items were increased. For large brewers, the beer excise tax doubled, from $9 to $18 a barrel. Each year U.S. brewers, importers and distributors pay over $3.6 billion in federal excise taxes and almost $1.7 billion in state excise taxes. Ultimately these expenses are passed on to consumers. Today, over 40 percent of the...