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Which political ideology wants taxation generally to create market distortions? Virtually every political persuasion favors some types of Pigouvian taxes, whic
by estearum 1mo ago
Which political ideology wants taxation generally to create market distortions?
Virtually every political persuasion favors some types of Pigouvian taxes, which are deliberately designed to do this, but which believe that it's generally good for a tax to be distortive by its own merits?
- s1artibartfast 1mo agoI said minimizing distortion isnt a purpose , not that I find i find it desirable on its own merits. So as you point out, one large segment of voters are interested in pigovian taxes. I think there is also a large overlapping segment that want taxes to optimize or reform behavior absent externalities for things they don't like. However, I think the biggest moral consensus amongst voters is for taxes levied on the beneficiaries from the public work or institutions funded. The public cares not if a tax has absolutely zero distortion when it is levied on the masses to benefit the few. This more resembles income, profit, or use taxes.