The Wall Street Journal’s James Taranto highlights a press release from Novation, an intermediary supplying medical devices to hospitals, complaining that some manufacturers are unethically shifting the tax to Novation’s customers. This complaint is ignorant of the law, economics, and ethics.
Category Archives: Incidence Of Benefits & Costs
Pollution Tax or New Sales Tax?
The District of Columbia charges 5 cents for each disposable shopping bag
On January 1, the District of Columbia began imposing a a 5-cent “fee” on disposable shopping bags.
Is this a pollution tax, as its backers claim, or just another sales tax?
Regulation is widely understood as a tax on the activity or person being regulated. Where these activities repair genuine market failures, benefits from regulation may result. If there are benefits from, say, automobile safety regulation, one would expect the beneficiaries to be persons who otherwise would have been killed or injured at the pre-regulatory safety level.
But what about the costs of regulation? Who bears them?