According to an information release that becomes dated May nine, 2006, the “Standing Senate Committee On Social Affairs, Science, and Technology” in Canada encouraged the creation of a Canadian Mental Health Commission so that it will be answerable for extensively upgrading the Canadian intellectual health gadget. As stated by way of Senator Michael Kirby, the Chair of the Committee, “The Senate Committee is committed to improving the range, high-quality and company of health and assist services which can be required through the tens of lots of Canadians who’re living with mental illnesses and addictions.”
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Funding The Proposed Change
Based on an in-depth three-yr have a look at on intellectual fitness and addiction, the Committee decided that it will fee $five.36 billion over a ten-12 months length for this mental fitness system improve. Where will these price ranges come from? According to the Committee, the revenue will come from raising the excise tax on alcoholic liquids by five cents in keeping with a drink.
Part of the rationale for the 5-cent increase per drink changed into glaringly the intention of elevating the needed finances for the proposed modifications inside the intellectual fitness gadget. Another justifying issue for the charge growth, however, became the truth that because each alcoholic drink will price extra, Canadians will be more inclined to drink decrease-alcohol products which include beer and wine in preference to liquor.
Let’s Do the Math
At first glance, this idea seems to make feel. Why should not individuals who drink assist finance an application in order to offer them with a higher intellectual health system? Why no longer permit folks that are a part of the “trouble” turn out to be a part of the “solution”? This logic seems sound till you do the mathematics. If $five.36 billion is needed to help finance the upgraded intellectual health system, then what number of beverages will be consumed in a ten-yr period to attain $5.36 billion greenbacks? The answer: 107,two hundred,000,000 liquids. That’s 107 billion, 2 hundred million drinks.
To arrive at how many liquids that is in keeping with 12 months, all we should do is divide this wide variety by way of 10 (for the ten-yr application) and the end result is 10,720,000,000. This remains a huge variety that happily may be “massaged” even greater. According to The World Factbook website, the populace of Canada was estimated to be 33 million people in 2006. Dividing 10,720,000,000 by way of 33,000,000 equals 325. Putting this in terms that the average person can apprehend, every guy, girl, and infant in Canada will eat 325 alcoholic liquids in step with yr for the subsequent ten years to finance the new mental health machine! Simply placed, those numbers are not practical.
The “good judgment” of this proposed mental fitness program also breaks down when it is examined more deeply. For instance, why might humans drink decrease-alcohol merchandise which includes beer if the increased excise tax applies to all alcoholic beverages? To help recognize this higher, allow’s use an instance. Let’s say that the common shot in Canada currently costs $3.00 and the average beer expenses $1.00. Based on the proposed price boom, if Joe liquids a median of five shots per week, his weekly average alcohol expenditure may be $15.25. When the numbers are calculated, this figures out to be 1.7% extra than Joe could have spent before the proposed tax growth. Let’s do a comparable exercising with beer. Based on the projected rate increase, if Pete liquids a mean of 5 beers per week, his weekly common alcohol expenditure may be $5.25. When the numbers are calculated, this figures out to be five% greater than Pete might have spent before the proposed tax growth. The factor: because the proposed fee growth affects higher-alcohol merchandise (including shots) proportionately less than their lower-alcohol counterparts (which include beer), why would Canadians transfer to lower-alcohol products?
Alcohol and Mental Health
Another query. What if tens of thousands of Canadians, figuring out that drinking alcohol is not exact for his or her “intellectual fitness,” notably lessen their alcohol intake or stop ingesting alcoholic beverages altogether? Where will the cash come from to offset this loss of sales? In a comparable manner, what if hundreds upon lots of Canadians who drink alcoholic liquids determine that they do not need to pay the greater excise tax and, as an end result, forestall drinking alcoholic beverages? If this occurs, in which will the authorities get the money needed to remodel the mental fitness device? In other phrases, do the Canadian authorities have a realistic “plan B” for this principal transformation?
A Logical Contradiction
From an exceptional perspective, is not it alternatively ironic that individuals who drink alcoholic beverages pay for the made over intellectual fitness system? Isn’t there a contradiction in good judgment someplace in this inspiration? Stated differently, if tens of thousands of Canadians have intellectual ailments or are addicted to alcohol or pills, wouldn’t the government need Canadians to drink LESS alcohol in an effort to lessen the existing alcohol abuse, alcoholism, and alcohol-associated intellectual fitness problems? Yet according to the contemporary mental fitness proposal, from strictly a financial perspective, it might appear that the Canadian authorities are banking the complete mental fitness machine improve on historical facts that strongly shows that Canadians will hold to drink at their contemporary or maybe higher ranges of consumption.
What occurs, for example, if there are price overruns in the proposed mental health gadget? There are, of the route, two “easy” answers to this problem: boom the excise tax on every drink or encourage Canadians to drink even more alcoholic beverages. Either “solution,” but, is predicated on the reality that so that you can “paintings,” the upgraded mental fitness system needs to be funded via Canadians who retain to drink alcoholic liquids.