Yea, just another consumption tax, all of which is always paid by the consumer. And since the price doesn't discriminate by an individual consumer's income, it becomes in practice regressive. It would be great here if the individual companies could be better held liable as opposed to an across the board tax.
Consumption taxes are paid by declining demand (due to a price point movement) but in the case of an inelastic good that ends up being forced on the consumer. So in this specific case I think a tax would be a mistake and end up being regressive in practice, but adding a large tax on automobiles might be a good alternative, with the aim of slowly decreasing the demand side and encouraging alternate transportation...
Honestly though, the US could just start funding public transit properly so that the alternative isn't so dismal.
Individual companies will set up bankruptcy remote subsidiaries for each oil platform. Instead, they should be required to purchase insurance. Yes, this will increase the cost to produce where it is most risky. But isn't that the point?
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Yea, just another consumption tax, all of which is always paid by the consumer. And since the price doesn't discriminate by an individual consumer's income, it becomes in practice regressive. It would be great here if the individual companies could be better held liable as opposed to an across the board tax.
Consumption taxes are paid by declining demand (due to a price point movement) but in the case of an inelastic good that ends up being forced on the consumer. So in this specific case I think a tax would be a mistake and end up being regressive in practice, but adding a large tax on automobiles might be a good alternative, with the aim of slowly decreasing the demand side and encouraging alternate transportation...
Honestly though, the US could just start funding public transit properly so that the alternative isn't so dismal.
Individual companies will set up bankruptcy remote subsidiaries for each oil platform. Instead, they should be required to purchase insurance. Yes, this will increase the cost to produce where it is most risky. But isn't that the point?