The optimal tax on commodities positions held for appreciation is not 0
We have seen tremendous appreciation for commodities prices recently. The below tax would solve part of the appreciation due to the strong price elasticity of supply owed to speculative holders of commodities. To bring at par the taxation on commodities held for appreciation with the tax incidence of commodities that are processed (i.e. sales tax, revenue tax, VAT), the speculative commodities holdings should be taxed. This tax should become an itemized
Read more