"The number of jurisdictions which ban the sale of alcoholic beverages is steadily decreasing which means that many of the former consumers of moonshine are much nearer to a legal alcohol sales outlet than was formerly the case. Moonshine-like distilled beverages with names like Collier and McKeel White Dog,[27] Everclear, Virginia Lightning, Georgia Moon Corn Whiskey, Ole Smoky Tennessee Moonshine,[28] Platte Valley Corn Whiskey Cat Daddy and Junior Johnson's Midnight Moon are produced commercially and sold in liquor stores, typically packaged in a clay jug or glass Mason jar. As a result of these changes and aggressive law enforcement, moonshine production is far less widespread than it was formerly." [1]
Obviously there is a point at which taxation is virtually equivalent to prohibition (1,000,000%?) so the aim of a good tax in this arena is to (1) discourage consumption (2) provide some revenue to offset against social costs of the activity (healthcare costs of smokers, for example) while (3) not being so outrageous as to push the activity underground altogether.