Price elasticity of demand (PED) should be relatively lower than price elasticity of supply (PES); in this case, the tax incidence on consumers, being important stakeholders is greater than the tax incidence on producers as consumers are unresponsive to changes in price, producers can pass on a relatively large burden of tax onto the consumers as they’re unresponsive. The economic incidence indicates the extent to which someone is made worse off by the
It was bad because “taxes not only raise revenue but they can regulate too.” For instance, if a government raised taxes on tobacco products, it will show the governments distastes towards tobacco and make less people buy it. If the companies were to say anything and try to fight the tax the government could say it was to raise revenue because so many people use tobacco products. This shows how important it really is
But some of the little steps people could do are out of reach for poor people. For instance, the difference of effects an LED light bulb and a regular bulb can do to the environment is huge. LED bulbs save energy and last longer, but has a price too high. Additionally, people in poverty still do actions like burning trash, which emits greenhouse gasses like CO2, making global warming worst where they can instead do the 3Rs (Reuse, reduce and recycle). Actions like which can change the future for the better are sadly not be able to be done by people in the poverty
Increasing interest rates raise cost of goods and services, which, in turn, reduces the amount of time and money people spend driving. Less people on roads means less demand for oil, which can cause both tax rate and oil prices to drop. On the other hand, when interest rates drop, people will be able to borrow and spend more money, which increases demand for oil. High demand for gasoline means high tax can be imposed by the government.
As stated in the text,”In truth, it is more than a coin—it is a piece of American culture.” Even though the penny has some culture, culture is nothing compared to losing money the losing money part is way more important than just being part of American culture. This shows how people can hold onto the smallest things for the dumbest reasons. Another thing stated in the text was,”Still, for many people, the penny's sentimental value remains the same.” Even though the penny may have some sentimental value the government is losing a ton of money minting new pennies because they cost more than they have in value.
But at the same time a smoker has turned to electronic cigarettes addiction, which does not guarantee the process of quitting nicotine completely that electronic cigarettes do not help people quit smoking. People thought that the e-cigarettes (electronic cigarettes) help smokers to quit smoking, but it is not enough to help them. E-cigarettes and smoking tobacco have the same risks, but it takes long time to see and feel what happen. Doctor Mayo said, “Mayo Clinic doctors don’t recommend e-cigarettes as an alternative to smoking or as a method to stop smoking. No scientific studies have shown that e-cigarettes are safe to use or affective in helping smokers stop smoking.
It affects people who are not even committing the action, but people who are near it. The soda ban should not official because of those bigger problems. Stated in ¨Soda´s a Problem But…¨ on page 288, ¨There are times when the government has to step in on obviously dangerous situations- especially those, such as smoking, that affect the people other than the person whose behavior would be curbed-... ¨ (Klein, 289)
To add, recreational marijuana is taxable! Therefore, it is money that can be put into our communities. Recreational marijuana as intimidating as some may think, can actually benefit our community in many ways. To begin, many believe legalizing marijuana would cause crime to increase, on the contrary legalizing it will lead to a decrease of crime. Imagine that getting your hands on marijuana was as accessible as cigarettes in a gas station, how many illegal cigarette dealers have been punished in jail with the maximum sentence for selling cigarettes?
“Sin taxes” are a type of excise tax levied on harmful products such as alcohol or tobacco. One of cigarette taxes’ purposes is to reduce smoking habits. However, what seems like a simple solution to generate revenue for the government and deter a harmful habit has social consequences that cannot be overlooked. Because cigarette taxes are currently regressing society by hurting low-income smokers and encouraging smuggling in the United States, they should either be revoked, or the generated revenue should be used to fund health organizations. The World Health Organization (WHO), a branch of the United Nations concerned with public health, claims that cigarette taxes should be authorized because they prevent smoking related deaths.
First, legalizing alcohol would decrease social problems. Since people have to pay for alcohol, there would be les smuggling. This means that fewer people would be getting their hands on alcohol. This would also prevent people from getting rich by selling alcohol. So cause of this the government