Tagged: excise

Tax incidence isn’t a subsidy - The Dismal Science

Eric Crampton Jul 03, 2014

Suppose alcohol excise doubled. As you walked down the supermarket aisle, you saw that excise tax pass-through rates varied from product to product: low-cost product prices didn't go up quite as much as you'd expected they would.Does this mean that supermarkets are subsidising lower-priced products? The University of Sheffield / East Anglia alcohol folks think it does.The findings, published … Read More

Legal marijuana markets - The Dismal Science

Eric Crampton Oct 01, 2013

Business Insider has a great write-up on Colorado's legalised marijuana markets. Currently restricted to medical marijuana sold through dispensaries, recreational use without prescription will be legal and anyone will be able to purchase from the dispensaries. They're expecting to raise $130m in taxes, although the tax mechanism is rather opaque. IRS won't let you take business deductions on … Read More