>The social cost of poverty is surely an externality. There may be some externalities associated by poverty, but the same could extend to taxing corporations m

>The social cost of poverty is surely an externality. There may be some externalities associated by poverty, but the same could extend to taxing corporations more. You don't reduce poverty by moving private wealth around by government fiat anyway. >Only assuming a perfect market. Free markets are an ideal to strive toward. The unattainability of the ideal isn't a reason to abandon its pursuit. Economies work better when the ideal is pursued and artificial barriers to contracting and private property rights aren't hoisted on people via legislation. But I digress, if you'd like to discuss this in more detail, please post a thread in a more appropriate forum.