One of the purposes of public taxation is to use this process to impact consumer

Question

One of the purposes of public taxation is to use this process to impact consumer behavior in positive ways to achieve desirable public policy objectives.

Focus: Apply the economic theory of consumer behavior to evaluate the appropriateness and effectiveness of implementing the type of British Columbia carbon tax described in the following article to make American and Canadian tax policy more fair, to achieve the appropriate public policy outlined, and to provide a revenue neutral tax swap for the national tax base.

Reading Assignment: Read the following article from the New York Times online

http://www.nytimes.com/2012/07/05/opinion/a-carbon-tax-sensible-for-all.html

Explanation / Answer

'Consumer Theory' Consumers can choose different bundles of goods and services. Logically, they will choose the bundle that gives them the greatest benefit (that maximizes utility, in economic parlance). Therefore, when the government would prefer to show that how the taxes given by public are used the there welfare only. That how the government departments are getting curroption free, the people are getting employment and how the whole nation is developing. The people would start to think of giving tax positively.

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