Let me be the first to admit i am no economist but a thought occurs as everyone discusses the latest Budget.
One of the tax increases is that for luxury cars. Fair enough we all echo, but where does that extra tax revenue go to? In fact where does any tax revenue go to? At the moment it seems to pour into an amorphous pool called the budget surplus before being allocated to education, health etc.
What if the revenue generated by the luxury car tax was directly funneled into research for alternative energy? What if a percentage of tax on tobacco went towards improving air quality and reducing emissions. In this way you have a cause-effect relationship between tax and spending rather than just filling a budget lake.
Naive possibly but at least you’d feel someway responsible for your actions, similar to green-energy initiatives.