Wednesday, March 23, 2011

"Please don't squeeze the Taxpayer"---A toilet paper tax? Insert your own punchline...

I generally accept the economic principle that if you want people to use less of something you put a tax on it, i.e. alcohol, cigarettes, etc. But is it a good idea to have people use LESS toilet paper?

Suttle unrolls toilet paper tax

""Mayor Jim Suttle went to Washington Tuesday flush with ideas for how federal officials could help cities like Omaha pay for multibillion-dollar sewer projects.

Among the items on his brainstorming list: a proposal for a 10-cent federal tax on every roll of toilet paper you buy.

Based on the four-pack price for Charmin double rolls Tuesday at a midtown Hy-Vee, such a tax would add more than 10 percent to the per-roll price, pushing it over a buck.

The idea came from a failed 2009 House measure by an Oregon congressman to help cities and the environment.""
Perhaps it is actually a good idea.  Can you think of a product whose demand is more Inelastic (the change in quantity demanded will not be significant relative to the change in price)?  If you gotta go, you gotta have it!
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