Disincentivising production over consumption.
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Replying to @IronHeadJane @djinnius
People will consume what is available to consume, even at stupid prices. You can't consume what isn't produced.
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Replying to @IronHeadJane
So adding ten cents to the price of soda at the factory discourages production, but not at the cash register? Why would that be?
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Replying to @djinnius
Putting expenses directly on producer can be disincentive to production, tax on consumers doesn't directly hurt their bottom line.
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Replying to @IronHeadJane
In principle the effect should be the same. In practice, psychology is important, and who sees which charge matters.
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Replying to @djinnius
The psychology I'm basing my thoughts on are that people will consume what is available, companies won't produce without guaranteed margins.
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Replying to @IronHeadJane
I'm saying if you treat is as a math problem, the two are the same, reduce demand, hence production. It's not though, people decide things.
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Replying to @djinnius
It's not a math problem, it's a human behavior problem.
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Replying to @IronHeadJane @djinnius
And the tax seeks to make money off of consumer behavior, while serving as a mild deterrent.
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Replying to @IronHeadJane @djinnius
Now, ending corn subsidies might be a better solution, decrease tax loss of gov't, raise prices of raw materials for candy, soda, etc.
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There are a ton of good reasons to end/drastically reduce corn subsidies. Aquifer depletion, topsoil loss, antibiotics in cattle, and on
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Replying to @djinnius @IronHeadJane
To add to the bases you already covered
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