Taxes

Give two specific examples of how taxes and/or government programs can effect incentives according to Wheelan?

Wheelan explained that higher taxes force people to find ways around those taxes. He used an example of a famous Swiss tennis player who was very rich. The government taxed him a lot since he was wealthy, therefore he decided to move his house from Switzerland to Monaco, where the taxes were remarkably cheaper. The tennis player didn't lobby or protest the government's decision, he simply moved his home. Wheelan further argued that there are "green taxes" which could be beneficial environmentally. He argued that if government began taxing gasoline, it would force people to drive less and/or buy more eco-friendly vehicles, helping the CO2 emission into our environment go down, which has been causing global warming. However he explained that by doing so, it hurts the poor people who rely on their vehicles, whereas the wealthy can afford higher gasoline prices.