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Maxim Lott's avatar

If it is overstated, the tax causes inefficiency. It’s true that the income tax also causes inefficiency, but generally focused unwarranted taxes cause extra disruption because they they are not spread around.

As far as direct intervention, I do not think the answer is obvious which is more minimal.

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Ning's avatar

So be it then. Hope the libertarians enjoy regulations and top down green infrastructure. I know I would have preferred a tax cut or credit switch, but that's just me, I suppose.

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Maxim Lott's avatar

I think reasonable people can debate that. Anyway, if we were going to go with a carbon tax, the subject matter of this point would be extra relevant.

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