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The very post you replied to answers your question: You get a race to the bottom. Competition pushes taxes lower than they would be if the democratic government
by anoncake 8y ago
The very post you replied to answers your question: You get a race to the bottom. Competition pushes taxes lower than they would be if the democratic government of each country could set them freely as they believe is fair.
- sbacic 8y agoI don't think there's a single government that sets taxes based on fairness. Rather, I'd wager that most governments set taxes as high as they can without suffering consequences such as economic slowdowns or capital flight.
- anoncake 8y agoA democratic government does what its citizens want it to do. Presumably they want taxes to be fair. If setting taxes to a fair level would cause capital flight, then something's wrong about our economic system.
- sbacic 8y ago> A democratic government does what its citizens want it to do. Presumably they want taxes to be fair. Both of these statements are based on very big presumptions indeed.