How Cutting Taxes Makes Life Worse for the Rich<br />And when we recall examples of actual events that left us with less money — think home fires, job losses, business downturns, divorces, serious illnesses<br />and the like — in almost every case, it really was more difficult for us to buy things we wanted.<br />Imagine that you are a wealthy car enthusiast facing two options: Driving a Porsche 911 Turbo (purchase price: less than $160,000) on well-maintained<br />highways, or driving a Ferrari F12 Berlinetta (purchase price: more than $320,000) on roads riddled with foot-deep potholes.<br />Because virtually every human evaluation depends on context, the category of goods whose accessibility<br />depends overwhelmingly on relative purchasing power is far broader than might appear.<br />Taxes affect absolute purchasing power, not relative purchasing power.
