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I think you have the causation backward. The poorer the country the less of a cut the government can take without bringing everything crashing down. These pla
by throwaway0a5e 6y ago
I think you have the causation backward. The poorer the country the less of a cut the government can take without bringing everything crashing down. These places are low tax because they cannot afford to be high tax.
If you look at local taxes and fees between US cities the same pattern emerges.
- ajkdhcb2 6y agoI think this is exactly right. Low tax jurisdictions are also often desperate to attract business. Mobile people are willing to pay high tax only when they get something else like stability and high quality of life
- AshWolfy 6y agoThe US is wealthy, has lower taxes, and lower happiness than similar countries