What effect do you think a tax on messages would have on the amount of spam sent on the Internet?

Describe the limits and downsides of government action.
December 25, 2020
Explain the role of utility maximization in consumer choice
December 25, 2020

Suppose the government decided to tax e-mail messages, text messages, and instant messages— say, at 5 cents per message. The money would be used to cut the income tax and sales tax on other goods and services. (LO6-3) a) Suppose a student sends 10 e-mail messages, 15 text messages, and 25 instant messages each day. How much tax would be paid? b) Would a tax of 5 cents per message reduce your use of messaging? c) What effect do you think a tax on messages would have on the amount of spam sent on the Internet? Is this a desirable outcome?