Lindahl tax

Imagine you are playing with your toys and your friend wants to play with them too. Your mom comes up and asks who wants to play with the toys more. You both raise your hands and your mom says you have to share the toys equally.

A Lindahl tax works the same way. It is a way to share the cost of a public good like a park or a road. Everyone who uses the park or road pays a tax based on how much they use it.

For example, if you use the park a lot, you would pay more than someone who doesn't use the park very often. This is fair because you are paying for what you use.

The money collected from the Lindahl tax is used to pay for the public good. This way, everyone who benefits from the public good contributes to its cost.

Like sharing your toys with your friend, a Lindahl tax helps everyone work together and share the cost of something that everyone uses.