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by vog 3912 days ago
> You might not like that governments are taxing some forms of electricity more heavily, but it's a valid way of encouraging the industry to migrate to cleaner options.

It's not just a "valid way". This is the way taxes are intended to work! Taxes are not just a way for the state to collect money (maybe in the past centuries). They are also the main way to frame the economy.

Here in Germany, the term for "tax" is "Steuern" which means something like "controlling/steering/directing/governing". This is exactly the official purpose of taxes, and includes collecting as well as spending taxes.

1 comments

It's interesting how many times I see people not understanding the effects of taxes. Like the short-minded people that think they'll reap huge benefits from taxing cigarettes and base their budgets around it. But then people stop smoking or find alternative sources for cigarettes so that the huge windfall of tax income never happens. Now they are left with a huge hole in their budget.
Did you consider the possibility that taxes on cigarettes are intended as an incentive to stop smoking and thereby lower the health care costs of treating long term smokers' various ailments?
Yes, but are you assuming that all tax districts had the same thinking? The situation I'm referring to up in the Northwest US, as I recall, was not considering that. Plus I'm sure there are other examples of budgets being based on taxes that didn't pan out, leaving a deficit in the budget.