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Sometimes even if the money doesn't move away directly, some entirely unrelated money ends up somewhere else building factories, and then somewhere-else starts
by fennecfoxen 14y ago
Sometimes even if the money doesn't move away directly, some entirely unrelated money ends up somewhere else building factories, and then somewhere-else starts competing with you and taking away large slices of your business.
- dllthomas 14y agoSure, but that has less to do with tax rates.
- fennecfoxen 14y agoDepends on how much the tax rates raise the price of labor or impair profitability (and limiting future investment on account of a lack of return).
- dllthomas 14y agoI'm not saying tax rates have no impact; obviously they can. But taxes levied to addressed collective action problems, where people are actually seeing a return on the taxes paid for things they'd have to fund otherwise, should in fact make labor cheaper. This is also usually dwarfed by things like exchange rates, wages (possibly including minimum wage laws), cost of living, and labor laws - most of which also have interconnections. It's no longer a simple equation in the way that "Hm, my money will be taxed less in that pile than this one" is.