The idea that interfering with property rights will not influence production is absurd.  It’s extremely naïve to think confiscating wealth will not have an effect.  Those trying to win a popularity contest will call this “fair.”  However, it’s taking the property of one and giving it to another, of course, the middleman always takes a cut.  Taking the property from one is a magical form of justice.

As Walter Williams said, “But let me offer you my definition of social justice: I keep what I earn and you keep what you earn. Do you disagree?  Well then tell me how much of what I earn belongs to you – and why?”  Goods are not distributed by some omnipotent being.  They are never in circulation.  They are either owned or unowned.  They can be appropriated if they are unowned.  Goods were first confiscated if they are distributed.

People will immediately consume what they have if they know they face future expropriation.  They are certainly not going to safeguard it for the expropriators.  Likewise, if they know they will be expropriated beyond a certain level.  This punishes the masses.  The people the best at serving the public are being forced to restrain themselves.  We are all being forced to live at a lower standard of living.

Resentment for those better off are concealed in fancy terms.  They might say things like “fair” and “progressive.”  In reality, this is taking from one and giving to another.  Progressive taxation is really discriminatory taxation.  They have more because the people approve of what they do.  They wouldn’t buy their products if they didn’t.  It’s also a means to bring about full collectivism.  Marx certainly thought so.

Confiscation has tremendous repercussions on the operation of the market.  People will curtail how well they serve the masses to minimize the level of confiscation.  The bad economist will never focus on the unseen.  All they will see is that money taken from A and given to B makes B have more money.  The bad economists and politicians have blinders on.  They wear them voluntarily.

Reference

Ludwig von Mises; Human Action