Plain Sense Economics

Growing up in Michigan, we called that carbonated beverage pop.

Slate published this article, “Sweet Surrender: Taxing soda to make you stop drinking it.” This is another example of using an excise tax to change consumer behavior. If one believes that there are negative externalities to the consumption of sugar-laden, artificially-flavored, carbonated water, then these taxes [...]

This report on NBC News tonight highlighted the impact of a recent increase in Federal taxes on cigarettes and chewing tobacco.

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The report mentions an estimate that a 10% rise in cigarette prices results in a 7% drop in smoking among youth and a 4% [...]

A “devoted reader” (nepotism alert here – he’s my son…) asked for a plain sense review of the gas tax holiday supported by Senators Clinton and McCain.
First, let’s get a couple of quotes:
As reported in The New York Times:

Mrs. Clinton said at a rally on Monday morning in Graham, N.C., that she would introduce legislation [...]