>>Well this creates the incentive that corporations try to minimise their employees, or try to shift employment to low tax/low cost countries. Now that very wel

>>Well this creates the incentive that corporations try to minimise their employees, or try to shift employment to low tax/low cost countries. Now that very well be desirable for corporations and people who derive income primarily from capital, but it is not desirable for society You mean not desirable for society in high tax/high cost countries I presume? What about society in low tax/low cost countries? It seems to be working out pretty well for Ireland[1]. That's why they resist immense pressure form the EU and maintain a low corporate tax rate. [1] which is a high cost/low corporate tax country