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Comment by pradn
The problem with taxing products higher is that it essentially becomes a regressive tax on the poor. If milk is $2 more expensive per gallon, that hits a poorer person much more than a rich person. This is why it's a hard sell to tax goods everyone relies on, like food, oil, and electricity. You could possibly then give a subsidy to lower-income people, but it's hard to track exactly how much a person spent on smaller items throughout the year.