[mifreewil]

Taxes don’t decrease the availability of capital, it simply re-distributes it to the politically-connected.

[bko]

It also results in dead weight loss.

For instance suppose the marginal buyer would spend $20 for a product and the producer can produce for $18 and the market price is $19, resulting in $1surplus to each party. If a $3 tax was put on the product, the transaction wouldn't take place.

So you went from $2 social surplus to nothing and no tax benefit.

Any arbitrary price distortions will result in dead weight loss or the overall social surplus to go down compared to no distortion

[411111111111111]

That's too one-dimensional, as the transaction would still take place later once the market price increased to offset the tax increase.

[eternalban]

Aha. So it's not the politically-connected who manage to keep IRS at arms-length. No. It is 'something but not political connections' that manages to frustrate the unjust greed of the "plitically connected" to tax rightfully earned profits of these corporations. Must be the "hand of God" ..

[amrocha]

Availability of capital is not a problem that needs to be fixed

[HPsquared]

Housing shortage is an example of poor capital availability.

[ClumsyPilot]

Not if you use it to pay off national debt