Taxes (market oriented approach)

Taxes from a market oriented approach are when a taxation system is designed to encourage economic activity and target only those activities that have the most negative economic impact. These taxes focus on specific goods and services that have negative impacts on the environment, public health, or on the economy as a whole. Examples of market oriented taxes include fuel taxes, taxation on activities causing environmental damage, and taxes on certain types of luxury goods. This type of taxation approach attempts to discourage certain activities and allow income to be generated from areas that create positive economic growth. The goal of such taxes is to create incentives to maximize economic efficiency while discouraging spending that has a negative impact on society.