The Worst Tax Hike Ever

“Most taxation has an over-burden in the form of distorting economic activity. But raising alcohol taxes actually moves us in the direction of economic efficiency. Even ignoring the costs alcohol imposes on the people who drink too much of it and on their families, the external costs of heavy drinking–costs on various public budgets plus losses to individuals as a result of drinking people outside their families — are several times as high as the taxes collected on it. So even in purely free-market terms, alcohol is currently grossly under-taxed; in effect, the rest of us get to subsidize the brewers and their best customers through our health insurance bills, our auto-insurance bills, and our police budgets.”
 — Okay, now I am starting to get concerned about all these deficit reduction plans.