Source: Bet On It
by Bryan Caplan
Could raising taxes or regulatory burdens on the rich have negative side effects? Champions of soak-the-rich policies often minimize the fear of such effects by scoffing: ‘Pshaw. They can totally afford it.’ Except in the direst circumstances, the champions of taxes and regulation are correct. The rich can totally afford it. While they won’t like further impositions, they have, if need be, plenty of surplus to weather the storm. What the champions of soak-the-rich policies miss, however, is that the negative side effects of their favorite taxes and regulations can still be horrible. Why? Because the mere fact that a person can afford a burden does not imply that they will, given a choice, ignore the burden. And in the real world, taxes and regulations almost always come with choices.” (01/29/25)