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> WA would have much better infrastructure Supply and demand does not care whether your state votes red or blue. You've put forth two common misconceptions her
by lend000 9y ago
> WA would have much better infrastructure
Supply and demand does not care whether your state votes red or blue. You've put forth two common misconceptions here -- one stems from a lack of economics training (that increasing prices always increases revenue), the other is naive (that the more money the government receives, the better the results).
If WA raised taxes (analog -- prices), demand decreases and fewer people like me move there for the tax benefits. More immediately, fewer large businesses headquarter there. Residents spend most of their money in WA so this reduces sales tax receipts, and transitively, the entire WA money supply. In the immediate term, it's obviously going to raise their tax receipts significantly. But in the long term, the effects could be quite negative, eventually even reducing inflation-adjusted tax receipts, if they really mess things up.
> Per Logic of Collective Action, the reason tax regimes should be normalized (local, state, national, international) is to minimize cheating (defecting).
Exactly what I disagreed with in my original post, but I guess we can agree to disagree... I do not think it is cheating to go somewhere that more efficiently spends your tax dollars. I suspect you think you would rather live in a society where you do not have as many choices.