Friday, October 28, 2011

The Nanny States of America, Part 3

The Nanny States of America, Part 3:

In Canada, if you walk into a bar, and order a $3.50 beer, the bartender opens that beer for you… ok there is a city tax of 7%, a sin tax of 12%, federal tax of 9%, and goods and services tax of 21%. (Percentage numbers based on taxes in Oakville, ON Canada in 1997). 

Now let’s look at the math, 7+12+9+21=49% tax on that one $3.50 beer, $1.72 in just taxes and that one beer is now $5.22. Now that is if each tax is based the original $3.50. If they can do this on a beer… how long do you think it will be before a simple can of snus or a pack of smokes is carrying 49% tax on them on top of the current outrageous sin, state, federal and local taxes that are on them now? 

In some states this tax can be as high as 90% of the retail cost as it is. Now add to that another 49% to 50% worth of taxes and you are looking at tobacco users footing the bill for a health care system that has already proved failed.  That is if they spend the money where they say and as we have seen in the last article how well they manage the money they say they are using. 

An interesting take from a smokeless tobacco user.

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