Licenses

“Licenses are also highly flexible when compared to sales or excise taxes because as long as they reflect the reasonable costs of state regulation—including the costs of protecting against a vast array of externalities like public safety, hospital visits, drug rehabilitation, education, and increased administrative costs—they can be imposed by local and state governments without voter or legislative approval.” — Stanford paper.

Think of the externalities for gasoline.

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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