Murphy's Logic: Stop automatic taxation

OPINION – Murphy's Logic: Stop automatic taxation CTV Atlantic's Steve Murphy shares his opinion on rising taxes in a time of inflation in this addition of Murphy's Logic.

It seems every new year brings price increases at the hands of government at all levels.

Tax rates and fees are often adjusted -- usually upward -- on the first day of the year, as if that’s something to celebrate.

This new year will see an increase in the federal excise tax on beverage alcohol, but not on Jan. 1, on April 1 -- April Fool’s Day. There’s a shot of irony in that.

The fair-minded can disagree about whether it’s appropriate to continue raising taxes on beer, wine and spirits. The simple fact that they call it a “sin” tax presupposes that there’s something wrong with buying the product, let alone using it. Alcohol abuse is a serious issue and perhaps higher taxes deter some of that.

But my issue with this tax increase is that it’s automatic. A budget passed almost six years ago raises the tax automatically, every April, by the rate of inflation. This year, that’s more than six per cent. It’s a gift that keeps on giving … to the treasury, without so much as a word of debate in Parliament, where people are supposed to be held accountable for the taxes they take.

And, once again, the timing is terrible. Tax increases are inflationary. This year’s increase fuels next year’s inflation rate, unless we put a stop to these automatic tax increases.

I’ll drink to that.