Sunday, November 1, 2009

Tax Water?

Urban economists might think taxing land is the ideal way to manage urban growth; PK thinks it wouldn't raise enough $$. Should we tax water? Like a tax on land (not a tax on property, which would include the development of land), it would likely not distort investment. I'm concerned about the distributional consequences of a tax on a necessity that many people consume inelastically.

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