Quote:
Originally Posted by Jacks
You have to look at tax rates in comparison to the areas/countries you are competing with.
You can raise tax rates all you want but eventually you will get to the point where it is beneficial for the investor to put their money in a different location that offers more benefit. I'm not saying they are at that point I'm just saying that you need to be competitive with tax rates in other states/provinces/countries.
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Taxes are only one part of the equation, raising taxes to pay for infrastructure such as health care, security roads etc will tend to reduce a company's cost, as if the goverment arnt paying for it then the companies will have to, and so still make it profitable to invest, also a market for the product is neccersary.
Africa has very low taxes, but also no infrastructure or market to sell in.
Germany has high taxes, but is a stable country with a good market to sell goods in and a large pool of highly skilled workers, it is doing very well in comparison with the US.