Tuesday, June 10, 2014

[toqsjotm] Global normalization of progressive taxation

Assume people and corporations can easily move to the jurisdiction that taxes them the least.  But all governments need to raise revenue somehow through taxation.  A government dysfunctional because of insufficient revenue will be an unattractive place to move.  What equilibrium will result?

Taxation at first glance is the obvious way to decrease income inequality.  But it may not be so effective if people move.  The dismal possibility is that income inequality is unchangeable.

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