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Is that meant as a disincentive or as a way for the local government to collect more revenue to capitalize on the phenomenon?
by philwelch 5y ago
Is that meant as a disincentive or as a way for the local government to collect more revenue to capitalize on the phenomenon?
- ivankolev 5y agoI'd say both, and it is failing at both counts :). The federal government is actually thinking of imposing it across Canada, even though most other places other than Vancouver and Toronto could actually use some foreign investment.
- philwelch 5y agoPigovian taxes are good economics but dubious politics for this exact reason. If you rely on them for revenue, you don’t want to actually disincentivize the behavior they’re intended to disincentivize so you keep the tax artificially low.