Question

which of the following may be classified as a pigouvian tax1.long term capital gain tax 2.corporate tax 3.carbon tax 4.income tax​

Answer 1

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Carbon tax can be classified as a

Pigouvian tax.

Explanation:-

• A Pigouvian tax can be defined as tax which is assessed against the private individuals or businesses for engaging in the activities that can create adverse side effects for the society.
• Its popular example is a tax on pollution. Pollution from an industrial plant can create a negative side effect.
• Pigouvian taxes were named after economist, Arthur Pigou.
• Long term capital gain tax is a tax levied on the sale of an asset that generates profit in the long term.
• Income Tax is levied on the income of an individual.