Hacker News new | ask | show | jobs
by jack6e 3065 days ago
> I'm not allowed to not pay my taxes

But you ARE allowed and entirely free to move to cities with lower tax rates, or states with no income tax at all, or any other location that provides you a better balance of income to tax costs. Amazon is an entity with the same rights to make decisions about re-locating to the locality with the most advantageous income/cost ratio.

1 comments

> But you ARE allowed and entirely free to move to cities with lower tax rates

Absolutely. But I can't negotiate with those places to get a special tax rate just for me. There is no "Dan's tax rate" that is different from everyone elses.

Oh, but if I just get rich enough.... they I won't have to pay taxes the same as the common-folk.

That's what's bothering me too. Give the same conditions to all businesses not just a favored one.
> But I can't negotiate with those places to get a special tax rate just for me. There is no "Dan's tax rate" that is different from everyone elses.

That’s only because your tax contribution is very small and you don’t have leverage. If 60% of the residents of a city leave, you can bet the city will quickly lower or remove taxes to try to attract more people.

>If 60% of the residents of a city leave, you can bet the city will quickly lower or remove taxes to try to attract more people.

That's exactly right. E.g. Michigan has designated NEZ zones[1] offering tax breaks (e.g. sometimes half the tax rate) to attract potential homeowners to distressed neighborhoods like inner city Detroit.

Sure, residents in another wealthy city (like Bloomfield Hills) in Michigan might complain they don't get the same tax subsidies as downtown Detroit but it still doesn't change the fact that governments will offer tax incentives for certain people (not just companies) to justify a desired economic outcome.

Detroit has to make those tax concessions because residents are fleeing and the city suffers from a lower tax base. The more desirable cities like San Francisco don't have to make the same tax concessions.

(I make no comment on whether NEZ actually works as intended or whether it is a net positive economically.)

http://www.detroitnews.com/story/opinion/2016/06/22/detroit-...