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Excise Taxes and the Internet
PRI Briefing
4.1.2001
Currently, only a small portion of the American population purchases cigarettes or alcohol online. But in time, as people become more familiar with the Net, that number will grow. Of course, that’s the case for the sale of any online products, however I think that these products, in particular, will gain and maintain online popularity faster than others. That’s because they are fairly easy to ship. Cigarettes are compact, lightweight, and easily transported—and truth be told, no one really likes to ask for them to be taken out of that locked case at the grocery store. Similar reasoning applies to alcohol sales. Although it’s heavier, it is easy to package and ship—wine clubs in California have been doing it for some time now. So what does this mean in a public policy context?
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