Timmy elsewhere

At the ASI.

The political problem with Pigou taxes.

3 thoughts on “Timmy elsewhere”

  1. Surreptitious Evil

    Am I having a particularly bad day or are the comments on that article nonsense? Three so far and none of them is Keith.

  2. SE – no, you’ve got it right on both counts.
    We are having a similar problem here, that some provinces have enacted a “carbon tax” (pedant alert – should be a “carbon dioxide tax, no?), so the leader of our federal liberals (a fatuous little lucky-sperm dick, I admit) is all a-twitter about introducing a federal carbon tax, too. While he no-doubt sees this a a wonderful bit of greenery (and a revenue bonanza), he and his followers seem to have no concept that the ‘carbon’ tax is set to push the market into the proper allocation of resources, and can therefor be set either too high or too low. The fundamental problem is that politicians don’t understand Pigou taxes – they see them not as a market-corrective, but as a handy tool to punish those whose preferences and decisions they disagree with. In this light, they conclude that there is no level of punishment that is too high.

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