If it’s not something that’s enforced globally you will either end up destroying certain industries and or having massive inefficiencies.
My point is that sin taxes might be a good way to discourage certain behaviors but not as good as a consistent revenue source.
Also there is a risk of perverse incentives like what happened in Tsarist Russia when most government revenue was coming from alcohol taxes.
What a terrible outcome! LOL
If the tax works you have to keep continuously increasing it every year. At some point that becomes detrimental (I mean there are good reasons why we don’t ban the usage of fossil fuels entirely..)
So it’s not a reliable source of revenue
If it’s not something that’s enforced globally you will either end up destroying certain industries and or having massive inefficiencies.
My point is that sin taxes might be a good way to discourage certain behaviors but not as good as a consistent revenue source.
Also there is a risk of perverse incentives like what happened in Tsarist Russia when most government revenue was coming from alcohol taxes.