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Canadian Taxpayers Federation launches campaign to end federal tax grab on liquor

December 04, 2017
Canadian Taxpayers Federation launches campaign to end federal tax grab on liquor
  • No Escalator Tax campaign opposes federal government automatically raising taxes on beer, wine and spirits each year
  • Automatic tax hikes undermine political accountability and set a troubling precedent for tax policy
 

OTTAWA, ON: The Canadian Taxpayers Federation (CTF) today launched the No Escalator Tax campaign demanding the repeal of the federal government’s legislation that automatically raises taxes on beer, wine and spirits each year based on the rate of inflation.

“Canadians are already being gouged every time they have a drink,” said CTF Federal Director Aaron Wudrick. “They deserve a break – not a hidden annual tax hike put in place by politicians too afraid to take the heat for raising them.”

Depending on the province, taxes already account for approximately 80 percent of the final price of spirits, 65 to 70 per cent for wine and nearly 50 per cent for beer.

The CTF’s campaign includes the website, NoEscalatorTax.ca, where Canadians can send a message to Finance Minister Bill Morneau and their own MP asking them to remove the escalator tax. The CTF has also created drink coasters that will be distributed across the country in establishments interested in participating in the campaign to raise consumer awareness about alcohol taxes.

“Aside from soaking Canadians just trying to enjoy a drink, this escalator tax is a clear violation of ministerial accountability. If the Finance Minister wants to raise taxes on Canadians, he should have to go back to Canadians each year and face the music, not bury it in a hidden, automatic regulation,” said Wudrick. “Even worse, if an escalator tax on alcohol is allowed to stand, who knows what tax they’ll try it with next? Gas taxes? Income taxes? The GST?”

By Laurence Morrison
on December 05, 2017
I’m completely opposed to this tax. Taxes already have an increase built in due to the “ad valorem” base of the current tax. Taxes already go up due to an increase in the cost of the item. Adding an automatic increase will only create a multiplying effect.

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