[O]ne of the very best kinds of tax increases we could pursue would be higher taxes on alcohol. Personally my low-carbon, high-booze lifestyle makes me wish that the policy case weren’t so clear. But it really is clear.
Yglesias and I very much agree on this. Consumption taxes on things that are bad for the public well-being are an excellent way to raise revenue and drive changes in public behavior. At some point we need to look at changing the perverse and back-asswards incentives currently in our government policy.