Taxes can be good, part 2

This is part two of a (hopefully infinite) series.

I’ve blogged already about bag taxes and the 5 cent plastic bag tax in D.C..  Today, Matt Yglesias links to a D.C. blog that talks about the dramatic effect on consumption that the minuscule tax is having.  As people switch to reusable bags or use their arms, an amazing 87% fewer plastic bags are being consumed.  The downside is that the city has only collected $125,000 in the month of January because the impact is much greater than anticipated.  That’s still money the city didn’t have before, and that’s a lot less bags degrading the environment and money going to petrostates.