Corrective taxes are one way to deal with problems such as pollution.For example, driving a car creates air pollution that is a cost to everybody.Using high-sulphur fuels for heating or manufacturing also creates air pollution.Taxing fuels that cause air pollution increases fuel prices and may persuade users to find, where possible, less polluting fuels.
Which statement below helps to best explain why some people believe that corrective taxes are fair and justified?
- People should be forced to live with the harmful effects of pollution.
- Alternative fuels as substitutes for high-sulphur fuels do not exist.
- People should pay taxes on pollutants even if they do not use or produce pollutants.
- Modern societies depend on the automobile and on industrial manufacturers.
- People who use or produce pollutants should pay for the costs of pollution.
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