Too often people criticize and lament about events in the news and government policies. Here is something to consider and it may be worth whining about.
Doug Ford keeps promising “A buck a beer”
Consider the implications of the “Buck a beer policy” as being touted by ‘Wannabe King Dougie.’ Ford wants the price of beer to be a buck a bottle but who is going to determine that price.
As Dougie touts, all the producers, large brewers and the microbrewers, should bite the bullet and reduce their price. Consider the following about the price of beer and its tax:
The blue portion represents the 47% tax on a CASE of beer, $ 17.16 but before you jump up and down screaming unfair, consider what that taxes pay for. Canadians have a huge net of services provided by the taxes they pay. Medical care, social welfare assistance, housing assistance, disability assistance and more.
So, should you squawk about high taxes or something else when you hear Dougie touting his ‘buck a beer’ platform?
However, Doug Ford is still going to try choreographing the public into acting as a lobby to force beer producers to reduce their income.
Price per bottle
The average price for a bottle of beer in Ontario is $1.52 [ based on the avg. case cost of $ 36.50 ] Now, Dougie wants producers to reduce their price to $1, a 66% reduction. What are the chances any brewer is going to entertain a revenue reduction as Ford promises?
Current pricing
$1 a bottle; Producer loss $ 0.52
‘It ain’t gonna happen’
As the above illustrations show, the producer will lose .52 cents if Ford’s promise is fulfilled. No manufacturer is going to accept a 66% loss.
Chances of government tax cut to affect “buck a bottle” promise?
By an examination the chart below, it is easy to see the chances of the government fulfilling its promise.
Impact on Govt revenue PER BOTTLE by any tax reduction
| TAX REDUCTION | REVENUE LOSS | BOTTLE PRICE |
| 10% | $1.72 | $1.37 |
| 20% | $3.43 | $1.22 |
| 30% | $5.15 | $1.06 |
| 34% | $5.83 | $1.00 |
Ford’s promise is all air
No beer producer will accept a 66% loss in revenue. The government revenue loss would be 34% to achieve the buck a bottle promise. In short, it will never happen.
Once again, Dougie is conning the people and the common Joe is believing him.
