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It's also about competition. Global business operates isn a highly competitive market where capital gains tax rates will be closely compared. But taxing soda when it's between ten brands by Coke/Pepsi vs Water. People aren't going to water for just 10c more (or w/e the tax is).

I'd imagine with illegal addictive drugs when prices increase 10-20% it won't stop buyers since they are already making a guilty-pleasure/poor choice so a slightly worse one isn't much of a bigger deal.

Some product and service categories operate under different dynamics than most things.




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