This is a common point of confusion. You’re talking about the scenario where commodity X becomes less desirable to produce than commodity Y, because the relative profit of X decreases if you tax it. That is about which of multiple potential economic activities one should engage in. This has nothing to do with a wealth tax.

In fact a wealth tax actually increases the desire to produce wealth, because the poorer you are the greater the marginal utility of each additional dollar.

Advocate of Score Voting and Approval Voting. Software engineer. Father. Husband. American.

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