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When people talk about infrastructure built by one municipality being used by people who avoid taxes by living across a political boundary they don't usually me
by Consultant32452 7y ago
When people talk about infrastructure built by one municipality being used by people who avoid taxes by living across a political boundary they don't usually mean rivers. What are you talking about?
- dragontamer 7y ago> avoid taxes by living across a political boundary If you're really worried about that issue, then just use toll roads owned by the local municipality. Sometimes there's a simple market solution to some problems. So I'm not really concerned about problems where the market has a solution. The issue with your way of thinking: is that in general... you will eventually come across an externality which cannot be addressed by market-driven thinking. Realize that capitalism is a tool that works in specific circumstances (basically any circumstance without a market failure / externality).
- Consultant32452 7y agoYou're arguing against things I didn't say and don't believe. All of my comments assume the context of this discussion which is people moving just beyond political borders to avoid taxes and then using the public infrastructure of the place with the high taxes. Nothing I've stated was intended to be universal or without exceptions.
- dragontamer 7y agoAlright. So its an externality. At the end of the day: the people who benefit from the infrastructure aren't paying for the use of it. Public infrastructure needs to be built, but if a local government builds it, other people come and the local government fails to get paid. Local government needs to tax those other people somehow, but they're outside the jurisdiction. So the solution is to use the state-government taxes (or national government taxes, if it crosses state lines) to pay for the infrastructure. ----- I mean, do you not agree that its a market failure situation? If you agree its a market failure, the only solution is a 3rd party enforcing its will to override the market. Its proven. The free market cannot solve any externality. Its a true market-failure situation.