4 ms·
Sounds like we are just talking semantics. When you buy liquor, you pay the market price (call it $10) plus an excise tax that the government adds on (let's sa
by mgalka 11y ago
Sounds like we are just talking semantics.
When you buy liquor, you pay the market price (call it $10) plus an excise tax that the government adds on (let's say $2).
Imagine the government nationalizes the liquor business. The buy up every liquor company, and continue operating them the same way as before ($10 price + $2 tax). I think anyone would agree that this $2 would still be considered a tax.
Now let's say the government gets rid of the $2 tax, but bumps the price of liquor up to $12. The tax is still there, it's just implicit now.