The exchange of payroll taxes for "pollution" taxes is interesting because it will cause people to reduce pollution output to reduce their tax burden. The problem is that you cannot reduce pollution to zero but it may be so reduced that not enough taxes are collected to do what we need to do. If you remove the pollution tax, you remove the incentive so you might eventually find yourself with BOTH pollution taxes AND payroll taxes.
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The exchange of payroll taxes for "pollution" taxes is interesting because it will cause people to reduce pollution output to reduce their tax burden. The problem is that you cannot reduce pollution to zero but it may be so reduced that not enough taxes are collected to do what we need to do. If you remove the pollution tax, you remove the incentive so you might eventually find yourself with BOTH pollution taxes AND payroll taxes.
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