Economic Analysis of Business Practice
Has there ever been a study on what the tax rate a state like California could levy? One where citizens would feel MC and MR are at equilibrium. I think it would be interesting if there was a model that could predict based on conditions (weather, cost of living, etc.) what tax rate a state could levy that would not cause migration; meaning where MC=MR. I would predict this model would be significant differences between the states (and even more differences between countries).
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