People in the UK don’t want to pay more fuel tax
Posted July 25, 2007on:
And I’m not bloody surprised either. They already pay a very significant fuel tax, one that I feel covers the externalities associated with their fuel consumption. When you have an externality, the government should tax to the point where the marginal cost of consumption is equal to the social marginal cost of consumption, taxing anymore than that is government failure.
However, in New Zealand we should pay more fuel tax, and I know one guy that agrees with me
What do you think? (bonus points for picking up the obvious economic inconsistencies in the above article, as it will give me the opportunity to say what I really think)