Paper Topic:
Government wants to reduce pollution by encouraging the use of public transportation by discouraging people driving their own cars. One solution is to raise gasoline taxes; another is to issue tax credits for people who bike, walk or use public transit to
[Name] [Professor] [Course] [Date] Role of Government and Taxation The government plays an important part in stabilizing the economy of the country . It can control the price of commodities by issuing tax on products . Although by doing this , the principle of free market will be violated (Economy Watch , 1 . By this way , demand for some commodities that produces negative effects to consumers and externalities can be controlled . Examples of commodities that produce too much negative effects are cigarettes , diesel , gasoline and other fuel products Cigarette is a commodity
that produces more negative effects than positive ones . Fuel , on the other hand , is a necessity in this modern world . However , studies show that it produces a global negative effect that cannot be taken for granted . It is said to be one of the major contributors of pollutant in the atmosphere (Socha , 4 . And so the government must take action for this issue . Government can make laws that can create a way of counterbalancing the negative effects of fuel consumption . As it is impossible at to stop the consumption of fuel , the government can always find ways of making the demand for it becomes less . One way , presented earlier , is the issuance of high tax . Another way is to offer incentives for those people that use less fuel . Examples are those people who refrain from using cars or public transportation vehicles
The use of tax will increase the price of fuels , which will be under the sales tax (CompleteTax , 1 . In economics...
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