Five men have been killed and another seriously injured in a huge explosion at a Boston industrial estate amid claims it was sparked by an illegal vodka making operation.
Stick the tax up too high and people will homebrew.
That people are homebrewing might be an indication that taxes are too high.
It\’s a general point that has to be kept in mind about tax rates. You can\’t assume that everyone is going to obey the law. Yes, of course, distilling (as opposed to brewing) is illegal, it\’s tax evasion not avoidance, but people will still do such things if they perceive tax rates to be too high.
And the very fact that people are doing such evasion is a sign that the people doing it think that rates are too high.
That general point again: tax evasion is proof that the people doing the tax evading think tax rates are too high.
Back to the specific case about booze: do we think that ever higher taxes on booze would lead to more such moonshining? And at what point does the harm caused by the consumption of moonshine ( you\’ve actually got to be good at distilling not to poison people with methyl alcohol) outweigh the harm not done by the law abiding not boozing as a result of the price of booze?
Something for the puritans to ponder perhaps?