Here is a weird one for you. After new got out that Alberta, Canada's home to free enterprise and low taxation, has the inordinately high booze costs the provincial government has decided to take the bold step of reducing the tax on alcohol... that, you know, they introduced themselves a few months ago:
Stelmach also said he's immediately rolling back the liquor tax increases that were introduced in the spring budget. That move will reduce government revenues by $180 million a year — and add to this year's deficit that had already been projected to reach almost $5 billion. Stelmach said he was never comfortable with the April jump in liquor prices when the government markup was boosted by $1.30 for a dozen beer, 75 cents for a bottle of wine and $2.89 for a 750 ml bottle of spirits. "It was something that I had a hard time agreeing with; it's been bothering me all that time," he admitted.
And just to show what a good guy he is, Premier Stelmach even whipped off a quotable quote: "...so just to close: cold beer, hot day, during very difficult economic times." Nice idea but I wonder which public health and education services are funded by those $180 millions? Because, unless all taxation is restructured, you will have taxes on beer and booze. So what public services are deemed less worthy than the marginal cost of a beer? And was there a loss of sales due to the increased cost or is this objection more politics than economics?