wealth tax

Even Laws That Haven't Passed Can Have Unintended Consequences

Mere proposals can change the risk calculus for business and investors. Politicians, and the public, should be wary. 

Peter Suderman | 4.30.2026 1:09 PM

Share on FacebookShare on XShare on RedditShare by emailPrint friendly versionCopy page URL Add Reason to Google

Media Contact & Reprint Requests

(Illustration: Midjourney)

If you follow public policy debates, you are probably familiar with the concept of unintended consequences. Laws or regulations implemented with good intentions can, over time, have unexpected, unintended negative effects, sometimes undermining or fully negating the good intention behind the rule. 

But even laws that have not actually passed can have unintended consequences. You can think of them as risk taxes, since they increase the costs of already-high-risk activities. 

Case in point, the Senate's housing bill. The bill is intended to address the nation's housing crisis, making home ownership easier and cheaper for ordinary Americans by increasing housing supply. It's a worthy goal, given that regulations, lawsuits, and price controls have left America with a dramatic housing shortage that has put home ownership out of reach for many. The bill contains a multitude of provisions intended to reduce the time and expense of building homes. A version of it passed the Senate in March with overwhelming support. 

The bill is not yet the law of the land, and it's possible it will change form. But even still, it's already causing developers to nix........

© Reason.com