[mzchristina323]

affect economic decisions.For examaple. home mortgage interest is tax? The federal government uses tax laws to affect economic decisions.For examaple. home mortgage interest is tax deductible and tax exemptions are given for exploring for oil. Why? and what is the behavior the government is trying to create and whats the reason thier trying to create this behavior?

[Monster Brain]

Anything the govt wants people to do it subsidizes and anything it does not want people to do it taxes. This is just the way the govt dictated behavior and people fall into the trap.Take smoking for example: The govt taxes it heavily because it is deemed unhealthy (not going to argue that one) but it relies on the tax revenue that if everyone stopped then what? Yup they would simply tax something else. They do this instead of simply making cigarettes and cigars illegal.The govt subsidizes public schools to the tune of about anywhere between 12k-15k a year per student but even DC where vouchers were legal kids could attend Private Schools for 7.5k saving the tax payer 5-8k but they will never relinquish their control of education so it is a failed program on a whole.