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Tax avoidance requirement of the government

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Reference no: EM131940856

The taxes levied against ethanol intended for human consumption are significantly higher than the taxes on ethanol that is intended for use in industry or laboratories as solvents and reactants. To ensure that ethanol intended for the latter purposes is not being misused, it is denatured, a term meaning that methanol has been added to the ethanol. If the denatured alcohol is consumed, the methanol reacts to form the toxic product methanal (formaldehyde) which can make anyone consuming this alcohol very ill, blind or dead. Comment on the appropriateness of this tax avoidance requirement of the government. Propose another alternative to the use of poisons to deal with this assumed problem.

Reference no: EM131940856

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