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how much do we pay?

So you buy a bottle of wine from the LCBO. Pay maybe $12, $14. But how much is it really worth? We all have bought into the idea that it’s OK to pay high taxes on booze, because that funds our expensive government social programs and keeps taxes off or lower on things like milk and children’s shoes. And, of course, drinking is a luxury, not a necessity.
But strip away those taxes, and what would pay? The money that Ontario pockets from your purchase is multi-layered. They start with what they actually pay from the bottle to arrive here. They they layer on GST, PST, a profit markup, and several other levees. And, of course, these are not calculated based on the original arrival price. They are based on the previous total with other taxes included, so we pay tax on tax on tax on tax.
Basically, the formula means you pay about 4.5 times what the board did. So that $12 bottle originally hit these shores at a little less than $2.70. Your voluntary tax dollars in action.

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