3 ms·

In Switzerland cantons have different tax laws, which have led to competition for businesses and very low taxes. I'm wondering why the same thing is not happeni

• astine 16y ago
  The same thing does happen in America, but local political pressures and interest groups often get in the way. Philadelphia is notoriously a single party town with a crony government that had no incentive to actually improve the town.
• djcapelis 16y ago
  Because despite assertions to the contrary, most Americans prioritize many things higher than low taxes when they consider a region to live in. One might argue that some of the regions that collect more taxes provide services that help make them more attractive, but that link is speculative. I would imagine though that the services state and local governments provide are of a broader range than services provided by cantons in Switzerland which may be another difference.
• dtegart 16y ago
  Well large corporations often get tax breaks in the US to locate a headquarters or factory in a state. But I think unless you are bringing several hundred jobs to the area, you are out of luck
• adolph 16y ago
  The USA works similarly. Some businesses gravitate towards some localities based on tax and law differences.
• JunkDNA 16y ago
  This is on display right around Philadelphia. As soon as you cross the border into neighboring areas, you notice businesses all over the place. Philadelphia has a number of big employers who can't easily relocate including a number of universities and medical centers. My understanding is that many of the really big corporations are given tax incentives to be in the city. Pretty much anyone else has long ago escaped to neighboring counties.