Comment by tossandthrow

Of cause that is a reason for more taxation.

There are 2 types of taxes: Those we charge for revenue and those we charge for behavior.

We don't charge income tax to deter people from working. We charge income tax because we really need money to fund stuff.

If you can not raise enough money, because companies / individuals are optimizing their tax, then you change it such that the budget holds.

... Oh well, I reckon if you are in the US you just keep borrowing. In that case, sorry about my reasoning.