Timmy elsewhereMarch 3, 2015 Tim WorstallTimmy Elsewhere3 CommentsAt the ASI. The political problem with Pigou taxes. previousFinally, something in The Guardian I agree withnextDiane Abbott’s housing policy 3 thoughts on “Timmy elsewhere” Bloke In Italy March 3, 2015 at 1:04 pm The problem of course not being the tax (in this case) but politicians. Hang them all. Surreptitious Evil March 3, 2015 at 8:02 pm Am I having a particularly bad day or are the comments on that article nonsense? Three so far and none of them is Keith. dcardno March 3, 2015 at 10:11 pm 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. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.