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When the demand is more inelastic, as it would be for fuel, the taxes need to be a lot higher to change your demand. I bet you would drive less if the gas tax w
by karl11 6y ago
When the demand is more inelastic, as it would be for fuel, the taxes need to be a lot higher to change your demand. I bet you would drive less if the gas tax was 500%.
- _qulr 6y ago> I bet you would drive less if the gas tax was 500%. Possibly. But neither the article author nor anybody else is suggesting a 500% sales tax. Moreover, super high sales tax that significantly reduces consumption directly conflicts with the original goal of taxes: to raise revenue for government services.