People Have More Money? Let’s Tax It!
As highlighted by David Henderson and Peter Boettke, markets and competition are like weeds, not delicate flowers. Economies recover even from severe boom-bust episodes and despite growth-retarding regime uncertainty. Even burdensome regulation, per Pierre Lemieux, causes a “slow-motion collapse” or stagnation, not a crash. But one thing can be counted on, as innovation or recovery begin to deliver additional spending power to the productive class of the economy, the “unmet needs” crowd will just as quickly be out clamoring for a heightened government share of the ‘bounty’ for some imagined greater public good.
A recent example; an editorial, “Capitalize on low fuel prices by raising Colorado gas tax,” in the Denver Post emphasized that the currently low and expected-to-remain-low gasoline prices presents an excellent opportunity to painlessly raise the gasoline tax, if not at the Federal level — due to resistance of some to raise taxes — then at the state level. Like many who support big government, an extra dollar in a potential taxpayer’s pocket is much better spent by the enlightened elite.