June 6, 2008
The Perfect Pigouvian Tax
Jim Glass takes Mankiw's Pigou Club to new heights.
Imagine a simple, single tax that can help avert global warming, de-fund Arab terrorists, save scarce natural resources, reduce pollution AND remedy the government's approaching funding crisis for Medicare (by heading off the coming diabetes epidemic, etc.) ... save private individuals billions of dollars of medical costs from avoided heart attacks and strokes and blood pressure medication prescriptions ... make the general population lean and good looking ... and improve your sex life too! That's the Fat-Gas Tax.
What's not to love?
Hat-tip: Don Luskin.