Under current institutional relationships affecting the supply and funding of health care in Australia, and in most other countries, a portion of the additional costs of health care of individuals attributable to the excessive consumption of alcohol are borne not only by the individuals alcohol consumer but also by the larger population. In the case of public-funded health care, including Medicare, public hospitals and pharmaceutical benefits, the extra health costs are met by higher tax burdens for all taxpayers. Further, because taxation involves deadweight costs of distortions to economic decision as well as a transfer, the economic costs of an additional tax dollar exceeds a dollar.