Governments often use tax policy to induce desired behavior (e.g., allow mortgage interest to be deducted) or

Question:

Governments often use tax policy to induce desired behavior (e.g., allow mortgage interest to be deducted) or to dissuade undesired behavior (e.g., “sin taxes” on cigarettes). Can you give two additional examples of how tax policy influences behavior?
Discuss the similarities and differences between the use of tax policies and cost allocations to modify behavior.