https://en.wikipedia.org/wiki/Deadweight_loss https://en.wikipedia.org/wiki/Deadweight_loss There are a lot of theoretical tax schemes for which the amount of

https://en.wikipedia.org/wiki/Deadweight_loss https://en.wikipedia.org/wiki/Deadweight_loss There are a lot of theoretical tax schemes for which the amount of collected tax could be $0 and there would be a market reaction. If the government put a $100 tax on pencils, everyone would buy fewer pencils and the government would get a lot less than they calculate. Keep in mind there are a lot of things investors could be doing with their money besides parking them in stocks. So if corporations lose 10% of their income off the top from a change in the tax code, investments like real estate or t-bills or securities are going to pick up the slack in comparison.