In Detroit and the surrounding areas, there is a ballot initiative to raise taxes in support of the Detroit Zoo. Most political theory suggests that taxes should be levied on activities which are undesirable, or that they should be levied in the event that they provide a non-excludable good/service, or if they are used to offset so-called “public bads.” So, even if we leave Coaseian analysis out of the discussion, it’s not appropriate to raise taxes to support a zoo, quite simply because a zoo is perfectly excludable: if you don’t pay the entrance fee, you can’t go inside. Further complicating the issue is the fact that three counties are voting separately, and funds will be allocated separately. If the initiative doesn’t pass in one or more … Read entire article »