Rat in the Hat
Gold Member
- Mar 31, 2010
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If the price of a glass of beer is $3.00 and the price of a glass of wine is $3.00, a consumer might prefer to drink beer. If the government decides to levy a beer tax of $3.00 per glass, the consumer might prefer to drink wine. The excess burden of taxation is the loss of utility to the consumer for drinking wine instead of beer, since everything else remains unchanged. Most notably the tax revenue from this consumer is zero.
Come on there are nuggets in there for you.
You can try to play at least.
The only ones who would try to impose a 100% tax on the beer would be tax and spend liberals.
Anything to get money for feel good social programs.