What would Mill say about consumption taxes, then? On Liberty doesn't really concern itself with where regulation IS justified; its endeavor is to show where it CANNOT be justified, and the only thing we can infer about anywhere else is that regulation MIGHT be justified. If Mill were privy to recent “keeping up with the Joneses” happiness scholarship, he might be convinced that consumption taxes would lead to a higher utility for virtually everyone, and that they would be justified. Interestingly, the justification Mill gives for competitive trade (which harms other people) is that “it is, by common admission, better for the general interest of mankind,” and that defense cannot be used for conspicuous consumption.

On the other hand, Mill was generally suspicious of governmental interference in marginal cases, and may have disliked consumption taxes on those grounds. It's likely that in a case like this, Mill would call for social opprobrium of conspicuous consumers. “The acts of an individual may be hurtful to others, or wanting in due consideration for their welfare, without going the length of violating any of their constituted rights,” he says. “The offender may then be justly punished by opinion, though not by law.”

What would Mill say about consumption taxes, then? On Liberty doesn't really concern itself with where regulation IS justified; its endeavor is to show where it CANNOT be justified, and the only thing we can infer about anywhere else is that regulation MIGHT be justified. If Mill were privy to recent “keeping up with the Joneses” happiness scholarship, he might be convinced that consumption taxes would lead to a higher utility for virtually everyone, and that they would be justified. Interestingly, the justification Mill gives for competitive trade (which harms other people) is that “it is, by common admission, better for the general interest of mankind,” and that defense cannot be used for conspicuous consumption.

On the other hand, Mill was generally suspicious of governmental interference in marginal cases, and may have disliked consumption taxes on those grounds. It's likely that in a case like this, Mill would call for social opprobrium of conspicuous consumers. “The acts of an individual may be hurtful to others, or wanting in due consideration for their welfare, without going the length of violating any of their constituted rights,” he says. The offender may then be justly punished by opinion, though not by law.”