An example: A few years ago a tax on luxury boats (boats costing over US$100,000) was tried in the U.S. Naturally, for every reason, demand for such boats is very elastic. The result of the tax was to cause the sale of luxury boats to plummet, which in turn lead to significantly increased unemployment among boat builders. A tax meant to tax the rich became instead a tax on working-class boat builders, just as economists had predicted. The tax was eventually repealed.
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