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Taxes aimed at changing behaviour are generally considered to be bad taxes. By whom?
by jessedhillon 14y ago
Taxes aimed at changing behaviour are generally considered to be bad taxes.
By whom?
- jacques_chester 14y agoThe answer I gave indirectly was: economists. Taxes introduce externalities, often have indirect incidence and so on. The "ideal" tax is one that raises revenue without distorting behaviour. Taxes are sometimes used for policy purposes. The classic example is "sin taxes" to deter smoking, drinking etc. But in general, if you want to modify behaviour, the tax system is a problematic way to do it.
- chubbard 14y agoBut, doesn't our current system have negative externalities that distort behavior? Or is this just some academic test that is impossible to ever really attain?