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Taxation as a behavioral incentive is typically applied os a sales tax. So in practice this is a consumption tax, not a production tax. The externalities in th
by PeterStuer 3y ago
Taxation as a behavioral incentive is typically applied os a sales tax. So in practice this is a consumption tax, not a production tax.
The externalities in this case are caused by the producer/promoter, as an externalized health risk. What you are probably refering to is the secondary effect of aggregate increased healthcare cost.
- HDThoreaun 3y agoThere’s no external health risk though. I reject the idea that people don’t realize unhealthy food is unhealthy, they just dont care enough to stop eating it. The health risk is completely internalized.