alt Hacker NewsOther replies supporting taxing externalities and scarce resources are correct, but it can be generalized as taxing undesirable behavior to disincentivize it.
Other replies supporting taxing externalities and scarce resources are correct, but it can be generalized as taxing undesirable behavior to disincentivize it.
The generalization I would use is that governments should tax any scarce resource based on the amount of revenue it should produce if used effectively, rather than the revenue a given consumer can actually produces. Whether that is land, radio spectrum, or clean air.
“Undesirable behavior” is overly broad to the point of being actively misleading, and gets you into sin taxes. smut or drugs are not the scarce resources anybody is talking about here.