Suppose that instead of income taxes the government taxed us on things society generally considers vices and frivolities? So, instead of collecting taxes from everyones income we put a tax on things like alcohol, cigarettes and porn? It wouldnt even have to be a very large tax, a 1 cent tax on every soda sold [...]

The 1990 “yacht tax” caused a large deadweight loss, because demand for luxury yachts made in the United States is _______. very elastic very inelastic perfectly inelastic since “rich” people will pay whatever is necessary perfectly elastic