Friederich Hayek on the Economy
One of the more formidable voices in economics was that of the late Friederich A. Hayek (1899-1992). In his classic, The Constitution of Liberty (1960), he argued that progressive taxation does not accomplish what most people believe. Taxing the wealthy at higher rates, in order to provide for larger government spending for the poor, does not obtain the desired goal according to Hayek. Hayek said: “Not only is the revenue derived from the high rates on large incomes, particularly in the highest brackets, so small compared with the total revenue as to make hardly any difference to the burden borne by the rest; but for a long time . . . it was not the poorest who benefited from it but entirely the better-off working class and the lower strata of the middle class who provided the largest number of voters.”
Hayek believed, as do most fiscal conservatives, that in principle the progressive tax is a political issue more than a tax issue. In theory […]



