“The failures of socialism and welfare statism clearly show that those who demand equality at the expense of prosperity will get neither equality nor prosperity.”—Richard W. Rahn, Senior Fellow, Discovery Institute.
It is axiomatic in economics that increasing the cost of capital (by taxing it) is destructive to capital formation and, conversely, decreasing it is constructive, allowing productivity to be enhanced, which builds overall wealth and raises everyone’s living standards. For us supply-siders, this is pretty basic; for Keynesian demand-siders who are mired in the old economy, these principles violate their command and control economic theories, hence decreasing their power. Their only remaining weapons are the politics of envy and class warfare, but they will lose, because capital goes where it is welcomed and stays where it is well treated.