[LINK] Re: OFF TOPIC Re: the rich and corporate parasites
Wed, 26 Feb 2003 12:05:13 +1100
On Wed, Feb 26, 2003 at 08:00:38AM +1100, Deus Ex Machina wrote:
> (as if its not a tautology) the irish case clearly shows that business
> is the driving force behind the economy. Ireland halved its tax rates
> more or less and more or less doubled its tax income.
The Irish case is a classic example of not including externalities.
The extra revenue came from companies relocating their incorporation
to Ireland to take advantage of the lower tax rates. Some of that
turned into increased economic activity, but some of it was just
tax avoidance in another jurisdiction...
In another version of the story it's called "the tragedy of the commons".