Pure Potency Pricing

“British Prime Minister David Cameron will propose . . . that British retailers charge a minimum of 40 pence (63 cents) per unit of alcohol. A unit is the equivalent of 10 milliliters of pure alcohol.”

American taxes on alcohol depend on the form it comes in:  alcohol in beer is taxed less than alcohol in liquor, with wine in between.  Cameron’s policy of treating all alcohol alike has a lot of theoretical appeal.  Why doesn’t he propose taxing it?  Do pro-business leanings explain his desire to see the money to people in the alcohol business?

Quote is from Paul Sonne and Jeanne Whalen, Cameron Wants Brits to Pay More for Alcohol in Bid to Curb Drinking, WSJ, March 23, 2012, http://online.wsj.com/article/SB10001424052702304724404577297814271968518.html?KEYWORDS=alcohol+unit

 

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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