Question

Your city is committed to raising $100 million for a new arena. the mayor suggests putting a tax on taxicab rides since out-of-towners disproportionately use taxicabs. is this a good policy decision?

Answer 1

One hundred million dollar is a lot of money to raise and the city will need to implement various tax laws to reach that goal. Putting a tax on taxicab rides seems fair since it will mostly impact people from out of town and won't affect the citizens of the town as much.