Governments throughout history have levied some very interesting taxes (azweird.com/history/weirdest_taxes_in_history-731.html). Each of the following taxes changed citizens’ behavior. Determine whether it’s likely that the tax also addressed a market failure.
a. The Hat Tax: Adopted by the British government, requiring every hat to bear a stamp on the inside showing it was legal.
b. The “Flatulence Tax”: Proposed, but ultimately not adopted, in New Zealand to help reduce methane emissions from livestock.
c. The Window Tax: Levied by English King William III on the number of windows in a house, which tended to be more numerous in wealthier homes.
d. The Cowardice Tax: Introduced in medieval England and applied to people who refused to defend the country at request of the king.