The federal government currently taxes alcohol on the basis of the 100-proof gallon. (Alcohol that is 100

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The federal government currently taxes alcohol on the basis of the 100-proof gallon. (Alcohol that is 100 proof is 50 percent pure ethyl alcohol; most hard liquor sold is 80 proof, or 40 percent ethyl alcohol, whereas wine is usually about 24 proof, and most beer is 6–10 proof.) How would alcohol consumption patterns change if the government taxed alcohol strictly on the basis of volume rather than also taking its potency into account?

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The Economics of Public Issues

ISBN: 978-0134018973

19th edition

Authors: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North

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