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> It seems like you're proposing taxing based on the price of the good, not the cost of the negative externalities. Wrong. I'm proposing that to have the same
by ucaetano 9y ago
> It seems like you're proposing taxing based on the price of the good, not the cost of the negative externalities.
Wrong. I'm proposing that to have the same economic incentive on a luxury version of a certain good you need a higher proportional tax to account for the flattening of personal utility curves.
And that's before we get into the fact that luxury vehicles have even higher negative externalities due to increased engine size, lower fuel efficiency, larger size, etc.
- khedoros1 9y ago> Wrong Then I think you're being very unclear in what you're saying. The externalities aren't necessarily related to the price of the vehicle.