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Competition between governments is harmful to citizens because in general, labour is never going to be as mobile as capital. And this is not just limited by reg
by lumberjack 9y ago
Competition between governments is harmful to citizens because in general, labour is never going to be as mobile as capital. And this is not just limited by regulations and laws (which it is). People just aren't going to move across borders because of politics, unless things get really bad. It just costs too much to move.
- murph-almighty 9y ago>People just aren't going to move across borders because of politics But they'll move across borders because of the effects of politics. My parents are looking to move from NJ after they retire due to the high tax obligation- not just income, but gasoline, tolls and property taxes as well. It's more tolerable when you're working but a little less so when your income stream isn't as high.
- tacomonstrous 9y agoI feel like you made the parent's point for them. Your parents are moving, yes, but only after they're no longer part of the labor force.
- KekDemaga 9y agoI live in PA on the border of NJ and I worked in NJ while I was looking to buy my house. Buying in NJ would of cut my commute at the time by 45 minutes each way but the property taxes were nearly $600 a month compared to under $1300 a year in PA for a similar home (the PA home is in a better neighborhood and isn't a townhouse as well). I made the choice to buy in PA then after a year or so found a PA job. NJ just does not provide much value for your tax dollar and I imagine many other people make the choice I made every day.
- tacomonstrous 9y agoNot everyone lives close enough to a state line to relocate without changing jobs though. I personally live in a different state than my job, though not for tax purposes. It's possible to do this in the Northeast, but in few other places.
- reaperducer 9y ago> People just aren't going to move across borders because of politics, unless things get really bad. It just costs too much to move. Perhaps in the EU or some other part of the world, but in the United States, the population is fairly mobile. People move from state to state all the time because of job opportunities, taxes, family, healthcare, etc... I saw a statistic while ago that said that something like 30% of Americans moved in the last five years.
- taysic 9y agoIt could be helpful too. If a government is being wasteful with its money and it doesn't result in more valuable services, then another area that is doing just as good of a job with lower taxes competes for that citizen. It's one of the few ways a government can be kept in check for excessive spending.