« Debating Liberty and Government | Main | Kantian Konundrums »

February 20, 2004

What?! You Don't Want to Be Mugged?

Oops! The City of Pittsburgh increased its parking tax from 31 percent (bad enough already) to 50 percent, the highest in the country, and now business at the downtown parking garages has fallen by 10 to 20 percent.

Typical of central planners the world over, the thugs in charge of the city government never even considered that people might change their behavior as a result of the tax hike. They just assumed that a 61 percent increase in the tax would result in a 61 percent increase in revenue. No doubt they will blame the greedy taxpayers for the loss of revenue, too.

The city's practically bankrupt as it is because of high taxes; but instead of reducing taxes to attract business, the city just hikes the taxes more, expecting to bleed the few hardy businesses that have stuck it out this far. Trouble is, the suburbs--and lower taxes--are just a hop, skip, and jump away; and as the parking garage example demonstrates, human beings don't just sit idly by and let themselves be plundered. Of course, when the next wave of businesses high-tails it out of Dodge, the city will just raise taxes again in yet another futile attempt to recover the lost revenue.

"Those who do not learn from history are condemned to repeat it." -- George Santayana

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