Context for Taxes

Question 1

Example of tax that hasn’t worked no 1

Answer 1

Fat tax in Denmark
- people simply got saturated goods from Sweden
- didn’t reduce overconsumption and decreased tax revenue for Denmark and cost of enforcing tax

Question 2

Example of a tax that hasn’t worked no 2

Answer 2

Indirect tax on cigarettes
- increase in vaping - worse
- increase in imported, lower quality cigs
- costs of health damage

Question 3

Example of tax that has worked

Answer 3

plastic bag tax
- 10p tax has reduced overconsumption
- saves environment and raises tax revenue