Respond whether you agree or disagree with this persons statement: I would stron

Question

Respond whether you agree or disagree with this persons statement:

I would strongly recommend that the government will raise tax revenue on alcohol. The one who will pay the most will be the consumer since alcohol is a product that is always highly demanded. No matter how high the alcohol prices, or tax raises the consumers will always be willing to pay for it. Also, I would suggest that a good market for the government to raise tax revenue would be the imported goods and services to the United States. For example, like the Chinese imported goods into the United States. By taxing imported goods and services entering the U.S.A., the one who would pay the most would be the business importing them. This might discourage trade and the business will import their products to other countries where there are lower tariffs but a big advantage is that consumers will start buying the products made in the U.S.A. and they will be willing to pay there regular price instead of the lower price that the Chinese sell their products for.  

Explanation / Answer

I disagree with too much taxing a good
Taxing would discourage people from consuming goods which reduces the consumption expenditure and hence the GDP. Taxing on imports would increase the price of the imported good which discourages domestic firms from being innovative. The consumer would have to pay more for the imported good and for also the domestic good as the reduced competition will force consumers to pay more for the same good. Certainly taxing a good will increase tax revenues for government but it also affects GDP.

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