Dec 13, 2012 8:03 PM
Gentle Readers,
On the contrary: Ms. Pavlich is correct. If taxing sugary foods reduces the output and consumption
of sugary foods, then logically, taxing capital, labor and other production inputs will reduce
production and consumption in the economy generally.
Her point here is that increasing marginal tax rates can have unforseen adverse economic
impacts.
She then points out that if liberals can understand how increasing taxes reduce consuption of
their disfavored products, they should understand how that affects other economic actions.
She is correct.
Sincerely,
John Lepant Brighton CO