Since 2014
How Efficient are the Current U.S. Beer Taxes?
Journal of Economics and Political Economy
View Archive Info| Field | Value | |
| Title |
How Efficient are the Current U.S. Beer Taxes?
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| Creator |
SHRESTHA, Vinish; Department of Economics, Towson University
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| Subject |
Externality; Beer Taxation; Efficiency.
H21; H23; I10. |
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| Description |
Abstract. This paper examines the status of current beer taxes in the U.S. by questioning how far away the present beer taxes are from the optimal taxes. Following the estimation of tax elasticity, I estimate the lifetime discounted costs that a heavy drinker levies on others through: 1) Years of life lost; 2) Social insurance system; 3) Drunk driving accidents; and 4) Forgone income taxes. The optimal level of beer tax ranges from 17.15 percent to 47.5 percent of the price per drink. Even the conservative estimates suggest that current beer taxes comprise only 16 percent of the external costs.Keywords. Externality, Beer Taxation, Efficiency.JEL. H21, H23, I10.
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| Publisher |
Journal of Economics and Political Economy
Journal of Economics and Political Economy |
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| Contributor |
—
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| Date |
2016-09-18
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://www.kspjournals.org/index.php/JEPE/article/view/924
10.1453/jepe.v3i3.924 |
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| Source |
Journal of Economics and Political Economy; Vol 3, No 3 (2016): September; 446-470
Journal of Economics and Political Economy; Vol 3, No 3 (2016): September; 446-470 2148-8347 |
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| Language |
eng
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| Relation |
http://www.kspjournals.org/index.php/JEPE/article/view/924/988
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| Rights |
Copyright (c) 2016 Journal of Economics and Political Economy
http://creativecommons.org/licenses/by-nc/4.0 |
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