4 ms·
Tax on fuel reflects the externalities to the whole of society, and arguably it is not high enough. So exempting tax (equivalently not charging for externaliti
by somewhereoutth 3y ago
Tax on fuel reflects the externalities to the whole of society, and arguably it is not high enough.
So exempting tax (equivalently not charging for externalities) is indeed a subsidy, a transfer of wealth from government (and so society) to the airline operators.