In the modern world, what industry has been taxed into extinction?
If taxes killed it, was that good or bad for society?
If it wasn't taxed to death, but simply moved to a lower/lowest taxing nation, what does that mean (to you)?
Taxed to Death
In the modern world, what industry has been taxed into extinction?
If taxes killed it, was that good or bad for society?
If it wasn't taxed to death, but simply moved to a lower/lowest taxing nation, what does that mean (to you)?
As far as I can tell, no industry has been taxed to its death.
<Is that a red herring argument from the groups that claim corporate taxes will kill an industry?>
I can think of some companies that moved operations to Mexico, in order to make more profits. But it wasn't because of high corporate or income taxes, but due to cost of living and labor wage imbalances. Hershey, Inc. is one example.
The sad irony is that thousands of Mexicans are willing to risk their lives to cross the border, just to work in the US as illegal immigrants. While the US is busy setting up HQ in Mexico, just to save some money by basically hiring at slave wages.
As you said companies can simply outsource when taxation becomes a problem just like they can outsource when wages become a problem. If every country taxed the way we do maybe we'd see companies "taxed to death." But that's just a hypothesis.
While I'm sure I could find an example when I haven't had two glasses of wine, I don't think anyone makes a habit of claiming that specific industries are taxed to death. They tend to be referring to economies or regional units. EG the population losses suffered by NY State over the years and the subsequent gains in lower-tax states.
I'll call your wine, and raise you a whiskey.Originally Posted by Dreadnaught
Industries want a home. That's simple. Do they choose that home by taxes alone, or is it weighed by the population of workers, the cost AND standard of living for those workers? Is there a national and regional identity and pride involved, or is it just about the money?
How about we move Wall Street to Des Moines, Iowa....it would be much cheaper for the investor if their brokers had a lower standard of living than Manhattan.
Businesses situate in various places for a variety of reasons, but many boil down to the cost and resources of a particular area. And not all brokers are in Manhattan. Financial services professionals are all across the country and the world.
Good night.
Of course they do. And "Wall Street" is actually becoming less reliant on NYC, but NYC is still too reliant on financial services. Trading can be done anywhere that has reliable electricity. High frequency trading is making Wall St. look like a coffee stain on a map. Good luck with that, New York!
Sweet dreams, don't let the bed bugs bite.
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