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Rush's Morning Update: Basics December 3, 2010

Rush's Morning Update: Basics
December 3, 2010

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I have a question foryou:Would you purchase tickets for a concert close to a year in advance, at a price over $200 a piece, without knowing which artists will be scheduled to perform (unless it was me)? My guess is no, most of you wouldn't make that kind of deal (unless it was me).

But that's exactly what happened in the Netherlands. Over 45,000 tickets were sold in just a few hours,nine months in advance of a musical festival, where none of the performers has even been announced.

The fans were told they could save moneyand stick it to the government, which imposed a taxincrease on tickets that will go into effect in January. The average savings will amount to $26,but avoiding higher taxes was enough reason to convince fans to act nowandbuy tickets for a music festival to be held next August. (Nobody knows who's going to perform!)

Now,a few days ago, we learned there is a thriving black market in New York City, provoked by the high taxes imposed on cigarettes. Since the latest tax hikes, almost a third of all smokes are now sold black market.

I don't care what part of the world you travel to,you will find the same thing happening:when higher taxes are imposed,especially if they are deemed unfair,people will change their behavior to avoid paying them -- no matter how rich or poor people are.

The only people too dense, or willfully ignorant, to understand this basic fact of lifeare elected Democrats -- especially those who remain in plain sight in Washington.

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