This is also very good

Build social and environmental value into prices. Until goods and services reflect the real costs and benefits of their production, incentives will be misaligned with the kinds of positive behaviours society wishes to promote. Getting the prices right would affect relative profitability and so would align what wages could be paid with the value that is created. Consumption and corporation tax are two vehicles for doing this, but they need to be applied in a progressive way.

Sure, let\’s get all externalities, positive and negative, incorporated into prices then let the market rip.

Although how you have progressive consumption taxes I\’m not really sure….given that the poor will always consume more of their incomes than the rich.

3 comments on “This is also very good

  1. You apply the consumption taxes to luxury items, no? Those things that the rich buy more of?

    You leave basic goods such as childrens clothing, food, etc. and the money the poor use to buy those things tax free.

  2. “…behaviours society wishes to promote.”
    Am I then correct to be concerned with exactly who is “society”?

  3. Perhaps the rich should pay higher prices, or the poor could get discounts in the shops by shoeing their benefit book.

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