How Much Revenue Could the U.S. Raise by Taxing Negative Externalities?
By Bryan Caplan
A topic at lunch: How much tax revenue could the U.S. raise by imposing efficient Pigovian taxes on things with negative externalities? For starters, how much could be raised by taxing pollution, congestion, and violent and property crime to the point where marginal social benefits equal marginal social costs?
Feel free to assume that we first scrap all command-and-control efforts to control negative externalities, then impose taxes on the unregulated outcome – and please show your work!