Wednesday, February 25, 2009

Perverse incentives created by alcohol taxes

Here's a great example of the perverse incentives created by tax revenue from alcohol sales and a strong lobby that prevents increases in alcohol taxes.

Is this what we want for marijuana?
  • In Georgia, Connecticut, Indiana, Texas, Alabama and Minnesota, lawmakers are considering legislation this year that would end the ban on Sunday liquor sales. All but 15 states sell booze on Sundays.
  • In Nebraska, a state lawmaker has proposed allowing beer to be consumed in state parks as a way to boost tourism.
  • Other states, including Utah, are considering allowing the sale of liquor on Election Day.
In fairness, the article does point out that several states are considering alcohol tax hikes, but the list includes California, which seems to have shot down the idea.

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