Friday, March 6, 2009

Increasing Gvt Revenue without Increasing Taxes

http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/03-06-2009/0004984436&EDATE=

Don't say this very often, but props to Alabama for progressive thinking. Alabama lengthened hours of liquor sales and will start allowing sales of liquor on Sundays. This will be more convenient for consumers while increasing overall sales (and therefore overall tax revenues).

I'm not alcohol's biggest fan and think it should be subject to Pigouvian taxes, the same way I think of tobacco, trans-fats, gasoline, guns, incandescent lights and water bottles. However, legally limiting the hours of alcohol sales seems to be an inefficient way of preventing drinking. Taxes can cause the same level of inconvenience but also raise state revenue while allowing people to actually consume if they want to.

Here's hoping other states follow suit.

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