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If the tax burden makes young people leave, they'll have to raise taxes even more on the remaining young people, causing more to leave, in a vicious cycle.
by klipt 8y ago
If the tax burden makes young people leave, they'll have to raise taxes even more on the remaining young people, causing more to leave, in a vicious cycle.
- SilasX 8y agoExactly. This is why I’m unreassured by blithe dismissals that “oh you can just raise taxes, what’s the problem”. The problem is that no one has to join the Ponzi scheme, and that’s exactly why many corporate PAYGO plans failed!
- toomuchtodo 8y agoThey'll find an equilibrium where they raise taxes just enough to cover outstanding obligations while still keeping enough residents to cover the tax rise. Pretty similar to how the Bay Area operates (you get to stay if you're rich or continue to grind, otherwise you have to GTFO).