Tax Guru-Ker$tetter Letter
Friday, December 13, 2002
This is the term analysts use when commenting on how things in the real world turn out differently than they had expected based on their forecasts using static analysis, where they assume changes in taxes have no affect on people's behavior. Anyone with half a brain could have figured that the piling on of taxes on cigarettes would lead to smuggling and counterfeiting of the items. Our rulers assumed that people would buy just as many packs from the same suppliers as before the new taxes.
That these things are happening more frequently as taxes are raised shouldn't be a surprise to anyone grounded in reality. What never ceases to baffle me is how the morons who weren't able to anticipate this reaction to the higher taxes are still in power.