Canadian brewers the latest to take aim at runaway taxes of the nanny state

IF ONLY ONLINE EFFORTS to change bad government policy – i.e. much of it – and bad governments – i.e. almost all of them – would go viral like those around more captivating subjects, like kittens tumbling like pandas. At that point, the Internet might actually live up to its democratizing hype.

Atwww.axet hebe er tax. ca, the campaign centers on what Canadian brewers – and the rest of us – call runaway taxation, as taxes now make up 47 per cent of the cost of a bottle of beer.

Beyond the beer itself, the ever-increasing taxation and nanny-state floor pricing, particularly prevalent with the Ontarianhating Wynne government, is one small example of the disregard governments have for our wallets.

But back to the beer. Though demand is down by about 10 per capita, in part due to high taxation, beer remains Canada’s most popular alcoholic beverage, making up over 40 per cent of total alcohol sales through liquor boards and other retail outlets. We bought the equivalent of 223 bottles of beer per person during 2016, for instance, says a report released this week by the Conference Board of Canada.

All that beer is good for more than just hangovers, as our consumption and foreign demand for Canadian-brewed beer accounted for $13.6 billion in economic activity in 2016.

“Consuming a Canadianbrewed beer supports many more jobs and businesses beyond the local brewery,” says Pedro Antunes, deputy chief economist at the Conference Board of Canada of the study’s findings. “No matter where Canadians buy beer, they support jobs across the country in a wide range of industries, including accommodation and food services, wholesale and retail trade, transportation and agriculture.”

The beer economy supported nearly 149,000 jobs across the country in 2016. Governments “supported” the industry by hitting it with taxes and markups amounting to 47 per cent of the average cost, raking in some $5.7 billion in the process.

Canadian brewers say the industry is severely threatened in 2018, however, by runaway taxes. Thus the online effort at www. axethebeertax.ca.

They’re particularly worried about automatic escalators that will kick in annually beginning in April, another policy that fills government coffers without regard for the impact on the economy, people’s jobs or other detrimental effects. It’s the same disregard behind many policies, from electricity supply to payroll taxes.

“Imagine being stuck on an escalator going up and up and up, and you cannot get off, and you cannot make it stop – that’s what beer lovers in Canada are facing with this escalator tax. We need people who love beer to help us axe the escalator tax,” says Beer Canada chair George Croft of the escalator taxes, speaking on behalf of some 50 brewers, large and small, who represent 90 per cent of all beer sold in Canada.

Since 2012, provincial taxes on beer have increased 58 per cent in Quebec, 18 per cent in Ontario, 19 per cent in Manitoba, 24 per cent in Saskatchewan and 28 per cent in Alberta.

Now, the two per cent federal excise tax that came into effect in March 2017 will climb annually, with the automatic tax escalator kicking in on April 1, the organization points out.

“That means even higher prices for beer in Canada,” Croft says. “Governments are punishing beer drinkers with these price hikes for no good reason and its time brewers and consumers said enough is enough.”

Beer, like wine and spirits, is part of the ongoing effort to separate Ontarians from their money.

That’s the reason there’s ongoing contempt for the government in general and, specifically, with a longstanding dissatisfaction with the handling of alcohol sales in the province, from absurd pricing to rigged sales restrictions.

Much of the ire is simply a reflection of our inherent dissatisfaction with taxes and paternalistic liquor laws, coupled with our distrust of pretty much anything overseen by bureaucrats and politicians. Tax increases are seen as another reason to privatize the operation, stripping government of its outdated controls of alcohol.

Yes, the LCBO stores themselves have come a long way over the years. They’re much nicer places to shop, especially compared with the Beer Store, that even more antiquated government-sanctioned cartel selling us our suds. The hours have been extended, but there’s nothing like the convenience found in other jurisdictions. Nor the selection. And, most gallingly given that the LCBO is the world’s largest buyer of spirits, nothing like the much better prices found elsewhere.

If the LCBO really wants to be accepted, cut the prices significantly, offer a much better selection (something akin to a grocery store in Tonawanda would be a start) and offer more convenience.

The province, of course, has no interest in any of that.

With alcohol, as with cigarettes, governments suffer from multiple personality disorder. On the one hand, they’re addicted to the revenues, on the other they want to discourage consumption. The nanny state prevails, but they do love the money. (There’s a similar issue with gasoline, electricity and water, where government preach conservation, but decry the losses when we actually cut back.)

The nanny state is never more apparent when it comes to booze. Ontarians apparently would become hardened alcoholics without minimum pricing and fettered access. All we have to do is look at the problems in nearby provinces and states to see that. Oh, wait, that’s not what you’ll find. And the government doesn’t want you to look elsewhere, lest you become even more upset about the poor state of things here.

Disillusionment is bad for the business of re-election, after all.

“I guess this means that the ordinary people need to lobby to get the service and necessities for comfort of living.” Denstedt, Hertzberger | 8