Wednesday, April 15, 2009

Oregon goes after beer drinkers

From the Wall Street Journal.
Today is the dreaded April 15, but at least in Oregon it's even going to cost you more to drown in your tax sorrows. In their sober unwisdom, the state's pols plan to raise taxes by 1,900% on . . . beer. The tax would catapult to $52.21 from $2.60 a barrel. The money is intended to reduce Oregon's $3 billion budget deficit and, ostensibly, to pay for drug treatment.
I guess the Oregon legislators did not learn about substitutes in economics class, or the ability for beer enthusiasts to drive to a neighboring state to buy beer. They will get the opposite of their intentions and it will hurt economic growth in the state. Another example of economic ignorance.

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