Russian Vodka Ministry Proposes Tax Cut

Apparently, the taxes on legal vodka are so high that many people are buying fake vodka products made with dangerous ingredients.

An increasing number of cash-strapped Russians are turning to cheap fake vodka. An estimated one in three bottles of vodka sold is contraband; many people die each year from drinking adulterated alcohol.

The tax cut was proposed by the new state alcohol agency which is otherwise known as the 'ministry of vodka'.

I suspect that the ministry of hooch is less interested in the health of vodka drinkers and more interested in sales of legal vodka.

Note that this is an example of the disconnect between the thinking of those who levy taxes and those who attempt to operate a business selling products that are taxed. Government tax-mongers seldom comprehend that a high level of taxation actually diminishes sales of legal products while spurring the creation of black market products.

Instances abound here in the U.S. where we see examples of state governments increasing taxes on particular products and then, with jaw-dropping dumbfoundedness, cry foul as customers resort to black market items or drive to the next state to buy the products.