4 ms·
>I guarantee a black market would emerge immediately FTFY But seriously, this experiment is already playing out in NYC[0]. Every marginal % you tax a product,
by padobson 4y ago
>I guarantee a black market would emerge immediately
FTFY
But seriously, this experiment is already playing out in NYC[0]. Every marginal % you tax a product, you push some number of consumers into the black market. At some point, the black market reaches a critical mass where the thing you're taxing might as well be banned.
[0]https://www.google.com/search?client=firefox-b-1-d&q=new+york+city+black+market+cigarettes https://www.google.com/search?client=firefox-b-1-d&q=new+yor...
- workingon 4y agoAt some point, the black market reaches a critical mass where the thing you're taxing might as well be banned. >>> This doesn't make sense, because you're still getting taxes on the white market merch. Even if black market merch dominates, its different from prohibition where you get no taxes.
- bombcar 4y agoAt some point the cost of policing it overtakes the revenues from white merch.