Beer Tax Increase
In case of payment of excise duty on Mental Health Programs? Do the math
Improving the mental health system
According to a statement release date was the May 9, 2006, the Senate Committee on Social Affairs, Science and Technology in Canada, has recommended the creation of an official Canadian Mental Health Commission for a significant improvement in Canadian Mental Health System. As Senator Michael Kirby, chairman of the committee, "The Committee of the Senate says, is to improve delivery, quality and organization of health and support services for the tens of thousands of Canadians living with mental illness and addiction required are mandatory. "
The financing of the proposed amendment
On the basis of a comprehensive three-year study on mental health and addiction The Committee has determined that U.S. $ 5.36 billion for a period of 10 years, the cost of this update of the psychic system. Where is the money come from? The Committee finds that the revenue will come from special taxes on alcoholic beverages higher by 5 cents per drink.
Part of the reason for the increase of 5 cents per drink is of course the aim of raising the funds required for proposed changes in the mental health system. Another factor to justify the increase prices, however, was the fact that will not cost Canadians more than any alcoholic beverage will be more likely to drink low-alcohol products, like wine and beer instead of liquor.
Let's Do The Math
At first glance, this proposal seems reasonable. Why not those who are helping to fund drinking a program that provides a better mental health system? Why not let those who are part of the "problem" of the "Resolution"? The logic seems reasonable, until you do the math. If U.S. $ 5.36 billion are needed to fund the mental health system expands, how many drinks should be consumed during the period of ten years to reach U.S. $ 5.36 million dollars? The answer: 107200000000 drinks. The beverage 107 000 000 000 200 million.
How many drinks are born each year is all we do is divide this number by 10 (for ten-year program) and the result is 10.72 billion This word is still a huge number, which, fortunately, massages like "more. According to the World Factbook Web site, the population in Germany is estimated that 33 million people in 2006. 10720000000 dividend of 33000000 corresponds to 325 put in a way that the average person can understand, every man, woman and child in Canada consume up to 325 drinks per year for the next ten years, and to fund mental health New! In short, these figures are realistic.
More Fallas
The "logic" of the proposed program breaks down mental health when examined more closely. For example, it could be because people drink less alcohol products such as beer, if necessary, increased excise duties on all alcoholic beverages? To better understand this, we use an example. Suppose that the costs, consumption Canada average is $ 3.00 and the average cost of $ 1.00 beer. On the basis of the proposed price increase, if Joe is drink an average of five shots from the week, the average weekly expenditure on alcohol consumption will be $ 15.25. To calculate the numbers, the figures in 1.7% of Joe would have moved the first proposal to increase taxes. A similar exercise with beer. Based on the expected increase in prices, if Pete is an average of 5 drinks of beer per week, the average expenditure weekly consumption of alcohol is $ 5.25. To calculate the numbers, the figures for the 5% would be more than Pete moved to the first proposal for increasing taxes. The key, as the proposed price increase refers to products of higher alcohol (eg vaccines) comparatively less than their counterparts low alcohol) (such as beer, why Canadians should shift to more products of alcohol?
Alcohol and Mental Health
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Senate Panel Ponders Soft Drink, Beer Tax Hike