I’ve been watching the news about proposed tax increases in New York and California. Unsurprisingly, these are targeted at wealthy people and businesses, as seems to be normal operating procedures for states that find themselves drowning in red ink. Said red ink appears, again unsurprisingly, to have originated in exorbitant spending on things that keep the poor from burning things down and the rich writing campaign donation checks.

To quote the emperor Tiberius – “It is the duty of a good shepherd to shear his sheep, not to skin them.” Telling folks, who have the means to pick up and leave when they feel like it, that they are going to have to pay even more for the privilege of living in a congested hellscape reminiscent of something out of a 1980’s “decade after next” dystopian action-thriller is a great motivator move all of their assets outside of your reach.

Everyone hates taxes when they’re applied to them. Something as small as a 1% increase in sales tax or adding a bit to the cost of a pack of cigarettes or a six-pack usually becomes a political hot potato, even if the stated reason for the increase is something everyone wants.

Here in Kentucky, it seems to go this way:

“We need to raise taxes because the high school is using history textbooks from 1976.”

“Don’t tax my soda and candy bar! Tax smokes instead!”

“Tobacco built this state! Tax booze instead!”

“Bourbon keeps the lights on in the Commonwealth! Tax everyone richer than me!”

In California and New York, it’s “Make the wealthy pay their fair share!” time again. Amazingly enough, the line where “middle-class” becomes “wealthy” always seems to be slightly above where the politicians sit on the economic scale.

Look, I’m not a millionaire, much less a billionaire. But even I see red when I do my tax forms every spring and see just how much of my salary goes toward whatever the folks in Frankfort and DC think are important. Yes, the rich can afford to get lawyers and accountants involved and reduce their percentage paid to Uncle Sam and all his minions. However, in real dollar terms, they pay a huge amount of what keeps the lights on in learing centers.

They eat a lot of grass, but look how much wool they give us!

So, the trick for these states and cities is to tax the rich as much as they can bear without heading for the exit. How much that is depends on your local breed of billionaire, but the nightlife in New York and the great weather in California are a huge draw. If you make them too expensive, no amount of dance clubs or sunset dinners on the beach are worth a fraction of your wealth that can be worked out in your head.

Remember, children, nothing is truly free. Somebody has to pay for bribes and boondoggles free subways and high-speed rail, generous-ish economic opiates that keep their addicts just this side of starving in the cold social services, and wasteful job programs for the politically loyal world-class public education.

If you demonize and punish your highest-producing sheep, don’t be surprised when they pack up their wool and find another flock.