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What percentage of taxation

  1. weholdthesetruths profile image62
    weholdthesetruthsposted 7 years ago

    At what percentage of taxation, will people's behavior change? 

    That is, will a business management change its behavior to avoid taxes, if the rate is 5, 10, 50, or 80 percent? 

    At what level of the taxation of productive investment does the behavior of investors change? 

    At what point will investors stop investing in anything except tax free government debt?

    1. paradigmsearch profile image93
      paradigmsearchposted 7 years agoin reply to this

      From what I have been seeing on the news, we have already reached that percent. smile

      1. weholdthesetruths profile image62
        weholdthesetruthsposted 7 years agoin reply to this

        Why do you think that?

  2. Evan G Rogers profile image75
    Evan G Rogersposted 7 years ago

    Well, if the natural rate of taxation is 0%, then any percentage increase from that will change behavior.

    So...  Taxes, by definition, change behavior.

  3. kerryg profile image88
    kerrygposted 7 years ago

    I think a more important question is *how* are behaviors changed by taxation.

    For example, right now the capital gains tax is substantially lower than the top income tax bracket, which encourages people to invest in the stock market. Once upon a time, this may have been a good thing, but with all the shenanigans going on right now on Wall Street, it contributes to economic instability and boom-bust cycles instead.