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Axe the Beer Tax

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  • Axe the Beer Tax

    Showed up on my facebook - sort of crazy. Why do we pay 47% tax when we buy a beer on average (Alberta is a bit better at about 35%)?

    Fact: 47% of the price of beer is government tax.

    Fact: The escalating beer tax is going to keep going up.

    On their drink of choice, middle class Canadians already pay enough tax.
    Yet, the government has passed an automatic escalator tax on beer that will:
    happen in perpetuity every year!
    without a vote!
    forever increasing taxes on Canadian hospitality.
    There is a regressive tax for you if there ever was one.

    Last edited by moahunter; 28-12-2017, 11:57 AM.

  • #2
    I do think these are too high but we have a long history of sin taxes in Canada so it's unlikely for them to go away as it would be hard to get public approval.

    I'm confused as well as the site asks us to petition the federal government over this but my understanding was most alcohol taxation is at the provincial level. Of course the site offers little in the way of details so that is hard to determine.

    Nit: It's a not a regressive tax. If it were then the tax rate on beer would decrease the more beer you bought. This would probably be good for my budget.

    "For every complex problem there is an answer that is clear, simple, and wrong"


    • #3
      ^it is a regressive tax, someone with less money spends a higher portion of their income on alcohol on average:

      So-called "sin taxes" have also been criticized for being regressive, as they are often consumed more (or at least at a greater proportion) by the lower classes. Such taxes are often imposed at a flat rate so they will make up a greater proportion of the final price of cheaper brands, compared to the higher-quality products generally consumed by the wealthy. For example, "people in the bottom income quintile spend a 78% larger share of their income on alcohol taxes than people in the top quintile."[8] Tobacco in particular is highly regressive, with the bottom quintile of income paying an effective rate 583% higher than that of the top quintile.

      I think the petition is about the escalator the Federal government has brought in - it escalates with inflation (which is illogical, other than as a tax grab).

      As Ivison writes, “The budget implementation bill, currently at committee in the House of Commons, contains an escalator provision that will increase taxes in perpetuity, without the need for the finance minister to table those increases in Parliament.”

      Adds Ivison, “From the government’s perspective, it’s pretty sweet — you take a one-time reputational hit but reap the rewards forever. The Finance Department anticipates it will take in an additional $470 million in excise duties over the next five years, thanks to the two per cent escalator.”
      Last edited by moahunter; 28-12-2017, 12:16 PM.


      • #4
        Fair enough, I didn't read that one all the way through.

        "For every complex problem there is an answer that is clear, simple, and wrong"


        • #5
          So income tax brackets should now be de-indexed?