Post #50411 by onepoorguy on the US Policy board

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Everyone's a bit worse off, and the government's better off (to the tune of 10 cents per carrot).

Quibble. If demand drops off enough for those carrots, the govt might also be worse off because whatever amount they got previously from sales of carrots could actually be more than with the addition of the 10cent carrot tax. Sort of like profit margin...if you sell X widgets at one price, and Y widgets at a lower price, there comes a break-even point, after which you're making more money selling Y widgets at the lower price.

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