Wednesday, January 7, 2009

 

Alcohol Taxes

Philip Cook has a good post at VC on alcohol taxes. I might use it in G406.

As a thought experiment, consider increasing the alcohol tax by 10 cents per drink and then distributing the proceeds annually to every adult, $50 each. All but 7% would come out ahead on this deal. Given the preventive effect of higher alcohol prices, even that group would benefit from lower auto insurance rates and in other ways.

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