• explodicle
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    4 hours ago

    Pigouvian taxes are a traditional solution to negative externalities, and they are often better received by the public than rationing.

    • It’s expensive to be poor - the lights turning off a few days before the end of the month will incur even more costs than a higher electricity bill.

    • Taxes raise money for other programs, instead of costing money to enforce rationing.

    • Higher taxes in general will also help reduce inflation.

    • Tax revenue can be spent on stimulus checks to offset the cost for people who use less energy than average.