3 ms·
> To be honest I hate this economic idea of enforcing a ban via adding tax to it. This ideology shows the lack of understanding of the disparity in income in In
by lkbm 10y ago
> To be honest I hate this economic idea of enforcing a ban via adding tax to it. This ideology shows the lack of understanding of the disparity in income in India. The middle class and below are the most affected and they face the most brunt of all this.
A ban just means everyone feels the same level of pain as the poor--so net, more pain--without the gains of tax revenue.
> The problem isn't solved here its just reduced by probably 10%
A tax is about internalizing the negative externalities. If we price in the cost of cancer (and the hyperbolic discounting of my cancer being way of in the future), and I still decide it's worth it to me, then let me smoke in exchange for funding public health initiatives that will fully offset the societal cost.