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If someone in power is so stupid to do it, companies will stop operating on their country It depends, for we have a state level test of this, Washington State
by hga 10y ago
If someone in power is so stupid to do it, companies will stop operating on their country
It depends, for we have a state level test of this, Washington State and Boeing, which has a very boom and bust pattern of profitability. Of course, political muscle was used on them when they last tried to expand outside of the state, but I'm sure that initially, when the gross receipts tax was imposed, it just cost too much for them to move their factories elsewhere.
Of course, this tax does nothing good for other companies that it hits (there's a lower threshold as I recall, otherwise few would ever start up a company in the state), that aren't so profitable.