re: What is the economic impact of dropping bags of cash?

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And that is the rub...and the thing that supply siders should just admit...it sucks to be taxed. It really is as simple as that...you don't have to come up with all sorts of convoluted and often wrong theories as to why it sucks...everyone knows it sucks, plain and simple.

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I'm searching for a point here, Dawg - surely you recognize that when taxation rises, the benefits of tax minimization schemes start to override actually engaging in the economic activity - the secondary benefactors - tax deferred investments (shelters) and tax specialists do better in that environment, but you won't get a proportional increase in the activity you want to tax.

Taxing exists largely for 2 purposes - 1 is to raise revenue and another is to punish behavior - much beyond the normal extraction rate (give or take 20%) creates a disincentive to further activity, in favor of these secondary actions. THAT is the point of the supply side theory - not only does it "suck to be taxed" as you so eloquently put it - it also generates diminishing or counter-productive economic returns to the taxing authority - unless the entire point is to depress the taxed activity.

Both of those parts are required to understand the supply side theory.