Chris Edwards’s take. He repeats points that I have made, including pointing out that we already have a very progressive tax system. He also points out that contrary to arguments from the Economist, tax rates on the rich are not the source of income inequality. Given the lack of policy foundation for a tax increase on the rich, advocates of such an increase are left to argue that tax increases would be a great way to get rid of societal “resentment,” towards the rich; a strange proposition, given that tax cheats have found their way into the Obama Administration (shouldn’t some of our resentment be reserved for them?), and given that we are much more justified in resenting the fact that as tax increase, resources shift to the less efficient public and governmental sector, setting the stage for disasters, as Edwards writes.
Edwards also reminds us that among government’s many inefficiencies is the inability to successfully allocate labor and capital resources thanks to the lack of price and profit signals generated by the government. And he gives us a reason to cheer for Canada. Read his piece.