Canada’s beer industry supports almost 150,000 jobs and sales are concentrated in local breweries. As a result, Trudeau’s plan to increase beer taxes every year will hurt an important Canadian industry.
The Trudeau government never saw a tax they didn’t want to increase.
Those tax increases may put more money in the hands of politicians, but they hurt the rest of us, and damage the economy.
That’s certainly the case with Trudeau’s ever-escalating beer tax.
The Trudeau government raised the tax on beer in 2017, increasing it 2%, and setting permanent increases every year.
While the government claims the increases will be in line with inflation, many Canadians don’t get inflation-adjusted pay raises every year, and the government will have an incentive to use the highest possible measure of inflation they have in order to extract more revenue.
As usual, when something costs more people will buy less of it, which means the Canadian beer industry will take a big hit.
And considering the fact that the industry supports almost 150,000 jobs and contributes $13.6 to the GDP of our country, a weaker Canadian beer industry will hurt our national economy.
Making things more outrageous, Beer Canada notes that Canada already has one of the highest beer taxes on earth, with taxes making up 47% of the cost of beer.
Hurting a Made-In-Canada industry
85% of all beer consumed in Canada is made in Canada, so the escalating beer tax will hurt a homegrown Canadian industry. It will disproportionately damage local companies, while big producers will be more easily able to absorb costs.
This will lead to further concentration of ownership of the industry in fewer hands, and will also increase foreign-ownership of the beer industry, further reducing Canadian control.
Finally, the increasing Trudeau beer tax will mean more money taken out of the pockets of Canadian consumers, at a time when millions of people are already struggling to hold on financially.
For all these reasons, the Trudeau beer tax should be opposed. Beer Canada has created a petition calling on the finance minister to Axe the Beer Tax, which can be viewed below:
Sign & share the petition to help spread the word.