There is another possible argument for including the rich in these tax cuts, one based on “fairness.” By this reasoning, the wealthy are entitled to low tax rates because they have temporarily had them, and it would now be unfair to take them back.
But by that same argument, unemployment insurance should never expire, and every day should be your birthday. “Temporary” has no meaning if it bestows a permanent right.
By Thaler’s convoluted logic, the money one earns is a gift from government, and those who pay taxes have no greater claim on their own money than those to whom the government hands it. How is this “libertarian,” by any reasonable interpretation of that word?
As I have said in various ways, Thaler is a paternalist but not a libertarian. One cannot be both.