Some may be surprised to know that I rarely watch local TV news. Just too many fires and murders. But I caught a bit of local news last night and there was a segment on the rollback of the county drink tax from 10% to 7%. The reporter ended his segment with a statement to the effect of.. it remains to be seen if local tavern owners pass on their tax savings on to their customers. Could be an unintended consequence if the public campaign against the drink tax gets vented back at the tavern owners.
But it begs a couple questions. Do we know the tax was passed on to the customers in the first place? Or how much of the tax was passed on? (all, some, none, or possible more than the tax?) How many taverns sell beer for prices that are not whole dollar prices which would make it hard to give back 3%?