Consumption patterns change if the government taxed

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The federal government currently taxes alcohol on the basis of the 100-proof gallon. (Alcohol that is 100 proof is 50 percent pure ethyl alcohol; whereas wine is usually about 24 proofs, and most beer is 6-10 proof.) How would alcohol consumption patterns change if the government taxed alcohol strictly on the basis of volume rather than also taking its potency into account?

Reference no: EM13802127

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