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Mark Young's avatar

> a progressive consumption tax would for sure strongly incentivize the wealthiest to reduce the part of their consumption activities that pollute the most, <

Unless I misunderstood the proposal, it would be indifferent to how polluting a "consumption activity" is, and so would not incentivize the wealthiest to reduce high-pollution activities any more than low-pollution ones.

Perhaps you just meant that high-pollution activities would be more affected because the incentive to reduce would hit wealthy people harder and their activities are on average more polluting?

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Philip Skogsberg's avatar

In a sense consumption tax like VAT is progressive in that richer people that consume more already pay higher taxes overall for their consumption. Why wouldn't one just suggest to increase VAT more or add tax to other forms of consumption without a VAT? (It's not progressive enough?)

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