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> Businesses open to support the new residents and are taxed. But why? Why should mom-n-pop have a higher fiscal hurdle than MegaCorp? If tax breaks are so goo
by mikec3010 8y ago
> Businesses open to support the new residents and are taxed.
But why? Why should mom-n-pop have a higher fiscal hurdle than MegaCorp? If tax breaks are so good, why not give them to everyone?
> What the city may lose in corporate taxes is more than regained through the increase in revenue from middle class population growth
Then MegaCorp shouldn't have any qualms about entering into a binding agreement that the economic bounty will come, or else MegaCorp pays a penalty equal to that bounty. I wonder why they don't do that?
- fortythirteen 8y ago> Why should mom-n-pop have a higher fiscal hurdle than MegaCorp? They don't. They have normal taxation. They wouldn't even have the opportunity to make profits, and hence be taxed, if the clientele never moved into the area. > Then MegaCorp shouldn't have any qualms about entering into a binding agreement that the economic bounty will come, or else MegaCorp pays a penalty equal to that bounty. I wonder why they don't do that? Because they're not shitty businesspeople? Remove the incentive and there's no motivation. It's basic behavioral economics.
- mikec3010 8y agoSo only "shitty business people" fully back up their promises? Then maybe the cities should reneg on their tax deals too?