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Is It Wrong to Laugh at Utah?

In Utah we find yet another example of taxes at work:

<span id="slt_site"><span id="slt_article">

Utah has been losing money  since lawmakers took flavored malt beverages out of grocery stores and  put the alcoholic drinks into state-controlled liquor outlets.

The loss comes despite an 86 percent markup at state stores,  which nearly doubled the price of the beverages. Sales have tumbled more  than 90 percent since October 2008, when the beverages were restricted  to state outlets. Sales taxes on the beverages also have drastically  declined, from $604,700 before the grocery-store ban to $72,280 in  fiscal year 2009. Tax revenues have declined to $45,900 this fiscal  year, which ends June 30.</span></span>
<span id="slt_site"><span id="slt_article">Analysts' predictions also  were off for sales tax collections. They predicted $467,400 would be  generated each fiscal year, but since March 2009, only $100,000 has been  collected. And that amount does not take into account the $600,000 lost  in taxes from annual grocery store sales. </span></span>

While I am not a huge fan of liquor, Utah has proven yet again that a tax (alongside more legislation) is the quickest way to bring the usage of some item to a screeching halt.

We also need to convince our news media to quit saying that the governing body is losing money when the truth is that they are not earning it. That is, if you assume that the government has earned any of the money it has.

Overheard at the Tavern

To pass lightly from old laws to new ones is a certain means to weakening the inmost essence of all law whatever. — Aristotle
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Chris is probably out getting lost somewhere. He has a tendency to do that. Please don't worry unless he fails to show up again sometime in the next week.

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