As a Neanderthal conservative, I do not approve of using taxes for the purpose of social engineering. If some group doesn't like smoking, they advocate raising taxes on cigarettes.

If someone wants citizens to become greener, they will advocate tax breaks for energy conservation. They do so because of the reality that a society gets less of what is taxed more, and more of what is taxed less.

In other words, those who want the government to modify our behavior are quick to advocate the use of taxes, because taxes influence behavior.

But when it comes to magic, people want to believe the opposite. Many Americans believe in Santa Claus economics: If you want something bad enough, a magic figure will appear and give it to you. Instead of looking like a fat man in red winter underwear, their benefactor looks more like Uncle Sam, or one of his representatives masquerading as a caring politician.

It seems that all real production must be done at the North Pole by magical creatures who have no relationship to the actual lives of the worthy children who have made the list of the "nice" and are therefore worthy of things they have not produced and cannot buy with their own resources.

Politicians promise a long list of nice things to these worthy children.

We can have universal health care. We can protect people from foreclosures on bad loans. We can educate everyone to whatever level anyone desires. We can take care of the aged, the young, the sick, the addicted, the sad and the confused.

The current government is dead broke and has taken on liabilities that can never be paid, but that is not because we spend too much, it is because we tax too little; that, and because of evil people who our Santa Claus politicians will "fight" against.

Yes, and we can raise more money. That grand philosopher back in 1875 stated what we all now believe: From each according to his ability, to each according to his needs!

The rich are getting richer. Oh, woe! How can anyone have more than they need when so many want so much?

We need to tax "the rich" more. We can tax the profits of "big" business more. Why Lord Almighty! We need to use the power of the government to level the proud and elevate the humble. Give me an amen, my children!

It is all dangerous contradictions and nonsense. Wealth must eventually come from those who produce it. In a modern economy, unlike the time envisioned by our nanny-state engineers, wealth comes very seldom from physical labor. Wealth is produced by creativity, capital, available energy and the ability to create free exchanges. The role of government is to provide a stable and safe environment where regulations and laws don't change every minute and a person always knows what can and cannot be done.

Businesses do not pay taxes. Taxes are a business expense that is paid by customers, by employees or by layoffs and business slowdowns.

There is not enough money in the rich to allow Uncle Sam to play Santa Claus. That is a hard fact irrespective of how appealing or charismatic the politician is who is telling you otherwise. This is NOT a political statement. It is true irrespective of what political party you are championing, or whose Kool-Aid you are drinking.

So many Americans want to believe in Santa Claus and social engineering at the same time, but the fact is, we get less of what is taxed. If we tax oil production, we get less oil production. If we tax the rich, we will get less of the rich. Before your bigotry allows you to shout hallelujah, think for a moment. The amount of money extracted from the rich will actually decrease as their tax rates increase.

If you don't understand that, I invite you to take an econ course.

The amount of creativity, capital, available energy and the ability to create free exchanges also decreases when it is punished by increased taxation.

I can give you an absolute guarantee. If the next government doesn't cut spending, and if it raises taxes and further restricts free exchanges, the current economic malaise will look inviting compared to the extended economic problems we will face for years and years to come.