Taxing the Rich

Very interesting post on Marginal Revolution that has prompted over 150 comments -- quite unusual. Two of my favorites:

For sake of argument, let's concede that our government spending benefits the rich much more than the poor. Let's also say that we need to do something to address growing income and wealth inequality. (Seems to me many of Alex's detractors take both of these positions.)

Lower taxes and reduce government spending! Evidently, money from the 'rich' gives them more benefit when spent by the government than when they keep it and spend it themselves, so why not reduce taxes and stop helping the rich get richer? Still time for a democrat candidate to adopt this platform and be swept into the White House by all of you who believe that government spending unfairly benefits the rich. Of course you would prefer to change the spending patterns to benefit the poor, but, as a start, let's stop spending so much to help the rich. Simply reduce taxes and spending, then watch the rich wiggle and scream as their wealth quickly evaporates, and our nation moves toward income and wealth equality.

Yep.

I see a moral case for collecting taxes mostly from the rich (because the poor spend all or most of their money on necessities, while taxes on the rich only cut into their discretionary spending). But I see a stronger moral case for drastically cutting the size of government.

When you come down to it, all taxes are protection rackets. Therefore it is morally unacceptable to collect them for ANY purpose beyond those absolutely necessary (police, courts, and defense).

Once you accept this moral principle, the idea of taxing the rich because they can pay reduces to Willie Sutton's reason for robbing banks: "Because that's where the money is."

Pretty much.