re: NY basically admitting that low taxes create job opportunities..

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This is the problem....you have to believe in fantasy worlds to buy this shite. There is no "sarlacc pit"....it is make believe. So is the vacuum where tax dollars disappear out of the economy. Yes, the business that pays the tax would use the money to do whatever they chose but when it is remitted in the form of taxes it does not vanish. The only true effect, at current and even much higher levels, is psychological....it pisses folks off (at least some folks, most people understand it is a cost of doing business just like paying for lights and water).

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This is true only if you exclude government inefficiency and redistribution ... Which is to say, it's not true.

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If lower taxes created more jobs why aren't we swimming in jobs?

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Because expansion of business requires consistent liabilities. Right now, we have a very unstable future regarding federal liabilities (taxes, regs, ACA, etc.) - mostly the fault of incompetent government.

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So, NY offers the entrepreneurs a 10 year freebie to get going and will then hope the ones that succeed - most will fail - get too ingrained to want to leave once the tax bills come due. Sort of a drug pusher's logic, but it makes sense!

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Exactly what I was thinking. A business gets established and could succeed without the high taxes. Then after 10 years, they get hit with the tax bill. By that time, they've established themselves and don't want to start over so they're stuck. Eventually, the taxes kill the business.

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Because expansion of business requires consistent liabilities.

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Ding ding ding.

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mostly the fault of incompetent government.

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Ding ding ding.

It isn't a phenomenon limited to 1 side of the aisle though. The D side tends to accelerate it more so than the R side, but both sides trend towards incompetent bureaucracy.

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Then there are our over regulated industries that make it more attractive to hire outside America than inside.... So there's that too.

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Over regulated? Which ones and which regulation? I will just about guarantee you that any regulation you can name is the result of years of abuse by the industry which knew it was doing something it ought not to have been doing or it is a regulation which is over seen by a regulatory body which is so woefully under-financed that the only way to ever get in its cross-hair is to do something so woefully destructive that it can't be ignored OR to do hundreds of incredibly stupid things every day of every week that eventually by sheer numbers of minor incidents alone the regulatory agency has to see what the frick is going on.


But lets talk about this seriously. What developed nation, which has any sort of regulation on business practices, is more attractive from a business perspective than the United States? I don't think you can seriously make this argument. It certainly isn't Europe or Japan. I would think you would have to look to developing nations to find a significantly more lax regulatory environment than the US...and you want to talk about risk, go ahead on and invest billions in China. That is a brilliant fricking move....of course life experience has taught that the US Taxpayers will foot the bill for the military to secure your investment so you can discount that risk to some degree.

Stop signs don't increase costs on a business and prevent someone from starting a business.

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Because expansion of business requires consistent liabilities. Right now, we have a very unstable future regarding federal liabilities (taxes, regs, ACA, etc.) - mostly the fault of incompetent government.

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I agree 100% that uncertaintity is killing the economy right now...and it is due to politics, not necessarily government. But what is uncertaint about taxes? Is there any credible evidence that taxes are going to increase enough to significantly impact business? If so who is proposing such a tax increase? I know you going to claim Obamacare is just such a tax but the uncertaintity is steeped in the constant bickering over the bill, not the bill itself.

Many trained economists also cited Krugman's work that suggests production will be concentrated in countries with high wages, but your iPhone is still made in china by slaves.

Higher taxes mean lower profits. All things being equal, you would shift your business to a lower tax area to maximize profits and please shareholders no? Why are you fighting math?

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SO who is this a net job killer? I know ya'll sincerely think it is, but all any of you ever do is say it is....you are like Leo Bloom....you keep saying it, you just don't say how.....

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My post was pretty clear. You are only looking at one aspect of the economy - currency - without accounting for production. Redistributed and inefficiently spent currency lacks production which hurts the economy. It's a basic macroeconomic principle which has the result of slow or non-existent growth (i.e. less jobs.)