Northern Victoria, Australia, imposed a vomit tax on pubs in the Greater Shepparton area that remain open
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Northern Victoria, Australia, imposed a vomit tax on pubs in the Greater Shepparton area that remain open between 3:00 a.m. and 6:00 a.m. The tax was to be used to pay for cleaning up the mess left by drunks who get sick in the street. Pub owners objected that politicians assume that their customers are responsible for the mess. Discuss the pros and cons of using such a tax to deal with this externality.
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The goal of the tax is to shift the cost of the externality onto the pubs and their cust...View the full answer
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