Chapter 12: EMISSION TAXES AND SUBSIDIES

The tax is the deposit and the subsidy is the refund—a type of penalty and reward program. The purpose of the subsidy is to provide the incentive for people to refrain from disposing of these items in environmentally damaging ways. It is their reward. The funds for paying the subsidy are raised by levying taxes on these items when they are purchased. In this case, the purpose of the tax is ... ................
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