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Will Higher Taxes on Gasoline Lead to Higher Government Spending?

April 26, 2017Economics elasticity of demand gasoline government lead price elasticity of demand Spending taxes

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Will Higher Taxes on Gasoline Lead to Higher Government Spending?

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Will Higher Taxes on Gasoline Lead to Higher Government Spending? Wednesday January 3, 2007One of the big objections to the Pigou Club idea of raising taxes on polluting activities is that governments will not use the money to off-set other taxes. Rather, the added revenue will allow the government to waste even more money on pork-barrel projects. This is related to the idea of the Starve the Beast theory of government spending, where tax cuts today will cause spending cuts tomorrow. If we raise additional tax money today, won’t government just spend it all tomorrow? See the full article here: Will Higher Taxes on Gasoline Lead to Higher Government Spending? More gasoline articles: