Background

Alcohol consumption is related to the development of various problems and diseases, including liver cirrhosis. Numerous prior studies have demonstrated that alcohol taxes are negatively related to beverage consumption, and that consumption is positively related to cirrhosis mortality rates. These findings do not necessarily imply that higher taxes lead to reduced consumption among the heavy drinkers who are most at risk of cirrhosis, however. Relatively few previous studies have directly estimated beverage-tax impacts on cirrhosis mortality, and these have produced inconsistent results.

 

The Current Study

Data were collected from 30 states in the U.S. during the period 1971 to 1998. Information was collected regarding the level of taxes imposed on beer, wine, and distilled spirits and on the number of deaths from cirrhosis related to the population in the state. The analysis controlled for other factors, including the state’s age distribution, religious factors, race, health care availability, tourism, proportion of the population living in urban areas, and local bans on alcohol sales.

 

Study Findings

The rates of death from cirrhosis were significantly related to taxes on distilled spirits but not to taxes on wine and beer. A 10% increase in spirits tax rates was estimated to reduce cirrhosis mortality by approximately 0.5%.

 

The Take-Home Message

Higher taxes on distilled spirits can reduce the number of deaths from liver cirrhosis

 

Reference

Ponicki, W. R., & Gruenewald, P. J. (2006). The impact of alcohol taxation on liver cirrhosis mortality. Journal of Studies on Alcohol, 67(6), 934-938.

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