Tax Warning: You are not logged in. Your IP address will be publicly visible if you make any edits. If you log in or create an account, your edits will be attributed to your username, along with other benefits.Anti-spam check. Do not fill this in! PreviewAdvancedSpecial charactersHelpHeadingLevel 2Level 3Level 4Level 5FormatInsertLatinLatin extendedIPASymbolsGreekGreek extendedCyrillicArabicArabic extendedHebrewBanglaTamilTeluguSinhalaDevanagariGujaratiThaiLaoKhmerCanadian AboriginalRunesÁáÀàÂâÄäÃãǍǎĀāĂ㥹ÅåĆćĈĉÇçČčĊċĐđĎďÉéÈèÊêËëĚěĒēĔĕĖėĘęĜĝĢģĞğĠġĤĥĦħÍíÌìÎîÏïĨĩǏǐĪīĬĭİıĮįĴĵĶķĹĺĻļĽľŁłŃńÑñŅņŇňÓóÒòÔôÖöÕõǑǒŌōŎŏǪǫŐőŔŕŖŗŘřŚśŜŝŞşŠšȘșȚțŤťÚúÙùÛûÜüŨũŮůǓǔŪūǖǘǚǜŬŭŲųŰűŴŵÝýŶŷŸÿȲȳŹźŽžŻżÆæǢǣØøŒœßÐðÞþƏəFormattingLinksHeadingsListsFilesDiscussionReferencesDescriptionWhat you typeWhat you getItalic''Italic text''Italic textBold'''Bold text'''Bold textBold & italic'''''Bold & italic text'''''Bold & italic textDescriptionWhat you typeWhat you getReferencePage text.<ref>[https://www.example.org/ Link text], additional text.</ref>Page text.[1]Named referencePage text.<ref name="test">[https://www.example.org/ Link text]</ref>Page text.[2]Additional use of the same referencePage text.<ref name="test" />Page text.[2]Display references<references />↑ Link text, additional text.↑ Link text====Pigovian==== The existence of a tax can ''increase'' economic efficiency in some cases. If there is a [[negative externality]] associated with a good (meaning that it has negative effects not felt by the consumer) then a free market will trade too much of that good. By taxing the good, the government can raise revenue to address specific problems while increasing overall welfare. The goal is to tax people when they are creating societal costs in addition to their personal costs. By taxing goods with negative externalities, the government attempts to increase economic efficiency while raising revenues. This type of tax is called a [[Pigovian tax]], after economist [[Arthur Cecil Pigou|Arthur Pigou]] who wrote about it in his 1920 book "The Economics of Welfare".<ref>{{Cite news|last=Frank|first=Robert H.|date=5 January 2013|title=Heads, You Win. Tails, You Win, Too.|language=en-US|work=The New York Times|url=https://www.nytimes.com/2013/01/06/business/pigovian-taxes-may-offer-economic-hope.html |url-access=registration |access-date=10 September 2021|issn=0362-4331}}</ref> Pigovian taxes might target the undesirable production of [[greenhouse gas]]es which cause [[climate change]] (namely a [[carbon tax]]), polluting fuels (such as [[petrol]]), water or air pollution (namely an [[ecotax]]), goods which incur public healthcare costs (such as [[Alcoholic drink|alcohol]] or [[tobacco]]), and excess demand of certain public goods (such as [[congestion charging|traffic congestion pricing]]). The idea is to aim taxes at people that cause an above-average amount of societal [[harm]] so the [[free market]] incorporates all [[cost]]s as opposed to only personal costs, with the benefit of lowering the overall tax burden for people who cause less societal harm. Summary: Please note that all contributions to Christianpedia may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here. You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see Christianpedia:Copyrights for details). Do not submit copyrighted work without permission! Cancel Editing help (opens in new window) Discuss this page