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Which tax specifically, is part of the Pigouvian taxation that George supported?

  • Wealth Tax

  • Carbon Tax

  • Inheritance Tax

  • Sales Tax

Answer

A Pigouvian tax is a tax on a negative externality. Negative externalities are the costs that a business or person creates for others without their consent. The most common example of a negative externality is pollution. A carbon tax is a tax on the amount of carbon dioxide that a business or person produces.
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