Assumes that the public benefits from whatever investments rich people make.
mlewyn
11

Yes, that’s generally sensible, but misses the point.

We know that it it takes lots of real, tangible resources to build big projects. And we know that these resources don’t come from rich people; their wealth is intangible, and the (small) tangible part is unaffected.

But resources have to diverted from somewhere. If not the rich, then who’s left?

If the government taxes the rich to, say, hire people…then there will consequently be fewer people available to work for you. Rich people will still outbid you for their labor every time. You would need to do without, or pay more. In either case, the hidden-tax burden falls on you.

I’m not even claiming that this outcome is bad. It’s only to illustrate the self-deception of people believing that taxing the rich is a freebie.

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