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Small beer brewers say 'cheers' to tax cut

Last Updated Wed, 03 May 2006 17:12:15 EDT

CBC News

Canada's small beer makers expect to create 1,500 new jobs over 10 years as a result of the the federal government's promise to cut the excise duty on their suds.

In their first budget revealed Tuesday, the Conservatives said they will cut excise rates on beer by anywhere from 15 per cent to 90 per cent for brewers producing up to 75,000 hectolitres a year.

The Canadian Association of Small Brewers, which represents over 90 brewers across the country, applauded the move.

The brewers currently employ about 2,000 people, but they expect the tax cut will let them create about 1,500 new jobs in the next decade.

"The tax reduction will allow Canadian craft brewers to achieve important tax parity with small brewers in the U.S. and around the world, who enjoy significant tax advantages in their home markets," John Hay, director of the brewers association, said.

"This will give us room to grow and compete in the highly competitive beer market," Hay said.

The association expects that about 45 per cent of the money saved from the excise tax cut will be invested in production and sales jobs.

Small brewers are defined as those producing less than 300,000 hectolitres of beer. They account for about five per cent of the Canadian beer market.

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I'm glad they didn't include this pharse in the legislation:

"We will be seeking minimum term sentances for drug users."

It seemed rather to focus on repeat offenders (kiddie porn, chatroom stalkers, violent crime), and putting more police on the Streets of Toronto... which quite honestly would be nice. Gun/gang-style crime is way up... especially in scarborough (no thanks to 50-cent), and traffic violations are obscene here... people drive like maniacs... and think that the roadways were made specifically for themselves.

I don't like the border thing though... this is the one piece of legislation that I believe is done to pander to the Current American administration. I say this becasue I think that more police at the border will make it harder (i.e. take longer) to get accross... more cars will be searched... and it'll be even more annoying to get across "that line". Sure the governments like each other more, but the actual people might not even get to 'know' each other... though with the rising dollar, I expect to see some significant consumerism Buffalo style soon.

Still, this terrorism thing... does it really exist? Well yes... but is it here? And do we really think they are going to be hauling nukes or some kind of WMD from Canada to the States? I just don't think this bit of legislation will actually produce anything it hopes to i.e. intercepting terrorists traveling over the border. And therefore, like I said, amounts to nothing more than pandering to the current American Administration... who, I admit, I consider a group of evil murderous foes holding their country hostage under the banner of 'fear'.

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