Various levels of government use taxes and fines to


Economic - Book: Bradley R. Schiller, Essentials of Economics, 10th Ed, McGraw-Hill

Various levels of government use taxes and fines to influence behavior of the public. The State of Iowa and Iowa cities use taxes on alcohol, tobacco, gambling, gasoline, pickup truck license plates, and speed camera fines for this end. Pick one of these taxes to write about. There are others as well which you may address with instructor permission.

Most of us have opinions about one or all of these issues. Being able to present your opinion is always interesting but you must support your opinion with economic arguments. Here are a few questions that should be answered:

1. Will the taxes have the desired effect (usually to reduce consumption)?

2. Will there be unexpected economic side-effects?

3. Are the taxes progressive or regressive?

4. Are the taxes primarily to influence behavior or to raise money?

The written text of the paper should be a minimum of six pages long.

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