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There's a difference between "sin taxes" that discourage behavior for paternalistic reasons and taxes meant to price externalities back in. Cap-and-trade is an
by satyrnein 7y ago
There's a difference between "sin taxes" that discourage behavior for paternalistic reasons and taxes meant to price externalities back in. Cap-and-trade is another way to use market mechanisms to put scarce goods/rights to their most productive use.
- malandrew 7y agoTaxes that price externalities back in should ONLY be used to offset those externalities. Most of the time however politicians use the externality as an argument to pass the tax but plan to us the money for their own pet issues.