Taxing

[andrewducker]

[Poll #1593003]

Inspired by a comment of lionsphil over at this discussion of the graduate tax.

Comments

[innerbrat]

In which case: c) you tax the things that create the greatest cost for you. Discouragement and fund raising work together in beautiful harmony.

e.g. smoking, driving in London.

[innerbrat]

actually, scrap that, driving in London doesn't create cost; running the Congestion Chrage system creates cost.

Never mind!

[andrewducker]

Driving in London costs through all sorts of infrastructure externalities. Have to pay for that somehow.

But yes, it's mostly a way of encouraging people not to bring their cars in.

[innerbrat]

It's ALSO a way of generating income, though. Sadly, it was too good at the former to effectively do the latter, which is why the cost was raise.

[matgb]

Is what I meant when I ticked the first option. Pigou was a clever bloke. Are you intentionally channelling one of the greatest economists ever, or is that excellent summary entirely your own? ;-)

[innerbrat]

If I ask who the hell Pigou was, does that answer your question?

[xquiq.livejournal.com]

Pigouvian tac is a great idea. Hellishly difficult to implement although London are doing a good deal better than I originally expected.