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yibgyesterday at 8:58 PM1 replyview on HN

Taxes aren't just there to provide an income stream to the government. It's also a mechanism to guide behavior via incentives (or punishment). Right or wrong there we're providing an incentive to hold assets longer, or use less fuel or buy from domestic producers etc.


Replies

claytongulickyesterday at 9:10 PM

IIRC, this was one of the main arguments for the Articles of Confederacy, the states were pretty nervous about this exact situation.

This was reaffirmed by Marshall [1] with the famous “the power to tax involves the power to destroy."

[1] https://www.archives.gov/milestone-documents/mcculloch-v-mar...