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.