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by bwb 283 days ago
Every tax system has a point where extracting more means less economic activity. I think that also applies to paperwork and all the hoops you jump through. I wish I knew where it was, I think that is a big debate :)

But at some point, people give up, they don't start businesses, and if they do, they form them in the USA. Or they move nearby, a lot of French people went to Belgium the last time taxes increased a lot.
1 comments
throwaway894345 283 days ago
That makes sense to me, but if we don't know where that point is, how can we say that France has reached it? I'm not trying to suggest France has or has not--I don't know the French economy well enough to have an opinion. I also wonder if "economic activity" alone is worth maximizing for--like certainly more economic activity is better than less, all else equal, but I think we also want to minimize inequality (maybe we want to maximize for median household income or something?).
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bwb 283 days ago
I don't know, I wonder the same thing. And does that number change based on culture? And what parts? And how many new businesses are starting up in France and adding good jobs?

I know that the French economy isn't doing great. And it would likely slide further if government spending slows down, but I'm unsure of the extent of that impact. But I wonder how much of the problem is the sheer volume of paperwork and numerous taxes that consume hours to complete, monitor, and review when you get audited.

I think the government should optimize for a lot of things (well-being, good health, outdoor, fun, no pollution, etc etc), but ultimately, you need money to pay for those things, and to pay for guns to keep Russia (or someone like them) from invading and taking them.

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throwaway894345 283 days ago
Yeah, I'll be the first to admit the French system could do away with a lot of paperwork. The amount of hoops I had to jump through to buy a phone or cancel my bank account in 2012 was wild. On the other hand, the French probably say the same thing about the amount of paperwork required to pay your taxes in the US.
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bwb 282 days ago
Every government should try to cut down on paperwork and hassle :)
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