Quote:
Originally Posted by Azure
Does a favorable business climate and a low tax rate go hand in hand, or can you have one and not the other?
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They generally go hand in hand, but there's a lot of assumptions inherent in that.
For low taxes, it's more of a relative thing. But not just that, it's also a mobility issue.
For instance, it is easy to travel from province to province (or state to state), thus relative tax rates are key. It is harder to move to another country, so the relative differences are more elastic.
Regardless, it is also an absolute issue: The higher the tax rate, the more of a drag that creates for hiring labour.
Incentivism is generally good.