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I say exactly the opposite: you can use taxing to make people buy more of something (some new tech you want to push) or less (e.g. cigarettes). This is assumin
by vezzy-fnord 11y ago
I say exactly the opposite: you can use taxing to make people buy more of something (some new tech you want to push) or less (e.g. cigarettes).
This is assuming that substitution effects invariably or above sufficient thresholds dominate over income effects, which in the case of addiction is a dubious proposition.
- sokoloff 11y agoIn the case of cigarettes, making them prohibitively expensive for teens will inevitably curb consumption over the coming decades, even if no adult addict quits because of the tax increase. Tax incentives on the other side absolutely work as well. I have a LEAF parked outside instead of my old Mercedes diesel precisely because the feds and state combined to give me $10K in gov't cheese to facilitate the purchase. Sure, I wanted it, but paying $20K was a lot easier to justify and I wouldn't have bought it for the "full" $30K.