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Interactive data visualizations of antibiotic use and resistance in North America and Europe
Federal and state alcohol taxes have fallen from about 22% to about 10% of retail price. Is it time to reverse this declining trend and substantially raise tax rates?
Alcohol taxes have a valuable role to play in deterring drunk driving. Tripling alcohol taxes from 10 to 30% would reduce consumption by about 8 to 15% and raise about $20 billion per year in government revenue.
An alcohol tax of roughly three times the current level might be justified on economic efficiency grounds, and perhaps more if alcohol consumption negatively impacts workplace productivity. But this depends on productive use of revenues, and assumes continued failure to severely punish drunk drivers.
Due to the failure to increase nominal rates in line with inflation, federal and state alcohol taxes have fallen from about 22 percent of the pretax retail price of alcoholic beverages in 1980 to about 10 percent at present. Is it time to reverse this declining trend and substantially raise tax rates? Alcohol taxation is warranted if its consumption causes broader societal costs that are not taken into account by individual drinkers. The main categories of such costs are medical treatments for alcohol-related illnesses, reduced