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I think his point was that if a consumable has a higher tax applied to it, and the purpose of those taxes usually is to modify behavior( see alcohol and tabacco) people will tend to consume it less. Which is why taxing abortions is not a bad idea.
You mean it depends??
Quote from: sirs on May 06, 2011, 04:20:21 PMYou mean it depends ??no i meant what i posted
You mean it depends ??
and i'm sure there are studies that show that even with lower consumption, it is possible for tax revenues to increase. For example, if a tax is increased by 100% and consumption decreases 10% does the govt gain revenue or does it lose it?
Quote from: BT on May 06, 2011, 07:18:27 PMand i'm sure there are studies that show that even with lower consumption, it is possible for tax revenues to increase. For example, if a tax is increased by 100% and consumption decreases 10% does the govt gain revenue or does it lose it? Is the consequential effect on the people from this tax a decrease in standard of living?