Wow. According to the research cited here, the externalities from alcohol consumption (the cost to society from DUI, health care, etc) should quadruple the alcohol tax (assuming we use the money to compensate for those costs - called Pigouvian taxes for anyone reading my blog). That would make a 6-pack of Bud, currently about $6 int...o $10.
The research also shows that light drinkers (the ones who don't cause the societal costs) would reduce their drinking because of the increased cost but the heavy drinkers wouldn't by very much. So we would still have the drunks driving around and getting liver disease, but the rest of us would lose out on the enjoyment of a good scotch after dinner.
I am a strong proponent of Pigouvian tax strategies, but I am not sure about this tradeoff.
The research also shows that light drinkers (the ones who don't cause the societal costs) would reduce their drinking because of the increased cost but the heavy drinkers wouldn't by very much. So we would still have the drunks driving around and getting liver disease, but the rest of us would lose out on the enjoyment of a good scotch after dinner.
I am a strong proponent of Pigouvian tax strategies, but I am not sure about this tradeoff.
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