GWU Prof tells why Turzai's tax scheme is flawed

Looking for Revenue? Tax Booze

State Rep. Mike Turzai (R-Pittsburgh) has proposed a gallonage tax on wine and spirits to replace Pennsylvania's current tax structure.  This is part of his privatization scheme for the PA Wine and Spirits stores. In this article written for the Huffington Post, George Washington University Professor Amitai Etzioni describes why a gallonage tax is a badly flawed approach.

With the exception of those 18 states that sell alcohol themselves, all the other states and the federal government impose a specific fee on each bottle or barrel of alcohol rather than collect a percentage of the take. As a result, as the price of booze rises, as that of most products does over time, the amount the government collects stays the same. Moreover, the effect of the tax on deterring alcohol abuse is diluted.

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