Repeat after me: the government has no control over who pays taxes
Kevin Drum makes a common error : "Does it matter that the working class barely pays for most of these programs in the first place, since their federal income taxes tend to be pretty low?" The government can control from whom it collects taxes. It cannot control who pays them. That is determined on the market. As Caplan puts it , "Tax incidence depends on supply and demand elasticity, not legislative intent." To take a simple example: Imagine you are a billionaire with a large domestic staff. You want to trust them, so you pay them a wage above the prevailing one. You're planning on giving them all large Christmas bonuses, when you read that a new tax law aimed at high CEO pay is going to cost you $50,000 this year. That happens to be the exact amount you were going to give out in Christmas bonuses, and so you decide simply to skip the bonuses this year. The government purportedly aimed to tax high-wage CEOs, but in this particular instance, the entiret...