The association between excise tax structures and the price variability of alcoholic beverages in the United States.
Recent tobacco taxation research suggests that excise tax structure plays an important role in the effectiveness of increasing taxes in reducing consumption. However, evidence on excise tax structures of alcoholic beverages is scarce. We linked price variability measures for beer, wine, and liquor i...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Public Library of Science (PLoS)
2018-01-01
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| Series: | PLoS ONE |
| Online Access: | https://doi.org/10.1371/journal.pone.0208509 |
| _version_ | 1819024496157261824 |
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| author | Ce Shang Xuening Wang Frank J Chaloupka |
| author_facet | Ce Shang Xuening Wang Frank J Chaloupka |
| author_sort | Ce Shang |
| collection | DOAJ |
| description | Recent tobacco taxation research suggests that excise tax structure plays an important role in the effectiveness of increasing taxes in reducing consumption. However, evidence on excise tax structures of alcoholic beverages is scarce. We linked price variability measures for beer, wine, and liquor in the US derived using Economist Intelligence Unit city data from 2003 to 2016 with state-level excise tax structures from the Alcohol Policy Information System. Ordinary least squares (OLS) regressions were performed to assess the associations between excise tax structures and price variability, for beer, wine, and liquor (spirits), respectively. Results suggest that, compared with a specific excise beer tax structure based on volumes, a mixed structure with both specific and ad valorem components was associated with 38% (p≤0.01) greater beer price variability. In addition, a mixed excise tax structure for liquor was associated with 60-77% (p≤0.01) greater liquor price variability. However, these associations do not imply a causal link between tax structures and price variability. In summary, a mixed excise tax structure is associated with greater variability in beer and liquor prices, an indicator for tax avoidance opportunities. Future research is needed to identify the causal impact of tax structures on price variability. |
| first_indexed | 2024-12-21T04:55:42Z |
| format | Article |
| id | doaj.art-95289cb2320b435995b3de6a0c0bebcf |
| institution | Directory Open Access Journal |
| issn | 1932-6203 |
| language | English |
| last_indexed | 2024-12-21T04:55:42Z |
| publishDate | 2018-01-01 |
| publisher | Public Library of Science (PLoS) |
| record_format | Article |
| series | PLoS ONE |
| spelling | doaj.art-95289cb2320b435995b3de6a0c0bebcf2022-12-21T19:15:22ZengPublic Library of Science (PLoS)PLoS ONE1932-62032018-01-011312e020850910.1371/journal.pone.0208509The association between excise tax structures and the price variability of alcoholic beverages in the United States.Ce ShangXuening WangFrank J ChaloupkaRecent tobacco taxation research suggests that excise tax structure plays an important role in the effectiveness of increasing taxes in reducing consumption. However, evidence on excise tax structures of alcoholic beverages is scarce. We linked price variability measures for beer, wine, and liquor in the US derived using Economist Intelligence Unit city data from 2003 to 2016 with state-level excise tax structures from the Alcohol Policy Information System. Ordinary least squares (OLS) regressions were performed to assess the associations between excise tax structures and price variability, for beer, wine, and liquor (spirits), respectively. Results suggest that, compared with a specific excise beer tax structure based on volumes, a mixed structure with both specific and ad valorem components was associated with 38% (p≤0.01) greater beer price variability. In addition, a mixed excise tax structure for liquor was associated with 60-77% (p≤0.01) greater liquor price variability. However, these associations do not imply a causal link between tax structures and price variability. In summary, a mixed excise tax structure is associated with greater variability in beer and liquor prices, an indicator for tax avoidance opportunities. Future research is needed to identify the causal impact of tax structures on price variability.https://doi.org/10.1371/journal.pone.0208509 |
| spellingShingle | Ce Shang Xuening Wang Frank J Chaloupka The association between excise tax structures and the price variability of alcoholic beverages in the United States. PLoS ONE |
| title | The association between excise tax structures and the price variability of alcoholic beverages in the United States. |
| title_full | The association between excise tax structures and the price variability of alcoholic beverages in the United States. |
| title_fullStr | The association between excise tax structures and the price variability of alcoholic beverages in the United States. |
| title_full_unstemmed | The association between excise tax structures and the price variability of alcoholic beverages in the United States. |
| title_short | The association between excise tax structures and the price variability of alcoholic beverages in the United States. |
| title_sort | association between excise tax structures and the price variability of alcoholic beverages in the united states |
| url | https://doi.org/10.1371/journal.pone.0208509 |
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