Policymakers are not likely to repeal alcohol taxes: Too many experts testify to their necessity and too many special interest groups agree, all while receiving government grants

Taxing Alcohol. Michael Thom. In Taxing Sin, pp 55-86, December 1 2020. https://rd.springer.com/chapter/10.1007/978-3-030-49176-5_3

Rolf Degen's take: Sobering theses on the alcohol tax. https://t.co/K2FfyUlDvC https://t.co/Tzqz9cw73x

Abstract: Alcohol is said to impose harms, including healthcare costs and impaired driving, that warrant an alcoholic beverage tax. However, research shows that light and moderate alcohol consumption is beneficial to health. Furthermore, the burden tied to heavy drinking are exaggerated and, when all costs and benefits are considered, may not exist. Research also suggests that alcohol taxes are self-defeating; those who are likely to drink less because of higher prices are the same light and moderate drinkers whose health improves after they drink. Heavy drinkers, by contrast, are not that responsive to higher prices. But policymakers are not likely to repeal alcohol taxes. Too many experts testify to their necessity and too many special interest groups agree, all while receiving government grants.

Keywords: Healthcare costs Impaired driving Alcohol taxes Special interest groups