Oil depletion allowance

[BT]

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.

[kimba1]

interesting thing about taxing products for behavior modification. it sometimes backfire due to the dependence of tax revenue.

I often hear complaints of such taxes are not generating enough money.

[sirs]

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.

Thus reinforcing his and others point that increasing taxes on something, gets you less of that something

[BT]

Not necessarily. Depends on the drop off in consumption vs the increase in tax revenues from the consumption that remains.

[sirs]

You mean it depends??

[BT]

You mean it depends??

no i meant what i posted

[kimba1]

I`m  accusing the purpose of the consumption taxes is more economic driven than ethical. ex. the complaint of lack of money for rehad clinics due to less people paying tobbaco taxes

[sirs]

You mean it depends ??

no i meant what i posted

And what you posted was IT DEPENDS       

[BT]

There are variables to consider, yes.

[sirs]

LOL...under redudant, it says see redundant

[BT]

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?

[sirs]

You mean....it depends....some more?

[kimba1]

100

200 x .9 = 180

80% gain

but people don`t normally buy something that increased 100% very quickly.

gas would be the exception.

[Plane]

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?

   Is the consequential effect on the people from this tax a decrease in standard of living?

[BT]

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?

   Is the consequential effect on the people from this tax a decrease in standard of living?

That is possible, but it is usually a self imposed decrease as the choice to consume and therefore pay the increased tax on a given product is voluntary. Tobacco, alcohol and abortions would fit into this scenario.