Long Live the Tax Loophole

Modern liberalism works in a simple but effective manner: liberals Find Problems. This is not a difficult task, considering that the world abounds with problems waiting to be discovered. At the heart of these problems is the fact that we do not live in the Garden of Eden: that there is a scarcity of resources available for us to achieve all of our desired goals. Thus: there is the Problem of X number (to be discovered by sociological research) of people over 65 with hangnails; and the Problem that there are over 200 million Americans who cannot afford the BMW of their dreams. Having Found the Problem, the liberal researcher examines it and worries about it until it becomes a full-fledged Crisis.
A typical procedure: the liberal finds two or three cases of people with beri-beri. On television, we are treated to graphic portrayals of suffering beri-beri victims, and we are flooded with direct-mail appeals to help conquer the dread beri-beri outbreak. After ten years, and billions of federal tax dollars poured into beri-beri research, beri-beri treatment centers, beri-beri maintenance doses, and whatever, a survey of the results of the great struggle demonstrates the potentially disquieting fact that there is more beri-beri around than ever before. The idea that federal funding for beri-beri has been a waste of time and money and perhaps even counter-productive is quickly dismissed. Instead, the liberal draws the lesson that beri-beri is even more of a menace than he had thought, and that there must be a prompt across-the-board tripling of federal funding. And, moreover, he points out that we now enjoy the advantage in the struggle of having in place 200,000 highly trained beri-beri professionals, ready to devote the rest of their lives, on suitably lavish federal grants, to the great Cause.

This post was published at Mises Canada on FEBRUARY 15, 2016.