Lowering Income Taxes While Raising Pollution Taxes Reaps Great Returns
Lowering income taxes while upping pollution taxes could save Americans a bundle in the long run. Photo: James Jordan via flickr.

As economic decision-makers–whether consumers, corporate planners, government policymakers, or investment bankers–we all depend on the market for guidance. In order for markets to work and economic actors to make sound decisions, the markets must give us good information, including the full cost of the products we buy.

Unfortunately, markets largely ignore the indirect costs of goods and services, thus grossly distorting the structure of …
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