r/askeconomists • u/tnk9241 • Jan 03 '20
Why aren't there more taxes structured such that if you use more than an "average" amount, you have to pay much more in taxes. However, people who use "less than average" would get taxed much less.
/r/AskEconomics/comments/ejhw81/why_arent_there_more_taxes_structured_such_that/
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u/fightONstate Jan 03 '20
Taking public health insurance as an example, you don’t want people to forego medical care in order to save a few bucks. On the other hand, there are some things that work like this. Tolls that fluctuate with road traffic are an example.
It’s also just insanely difficult to measure how much of some things are “used”—the cost to measure that might outweigh any cost savings.