This statemente is not true, investment decision are no taken for government advertisement campaigns. Investors ask for, first of all, the rule of law to be accomplished, clear rules of the game, low taxes, they know hau to calculate the return of their investment. On the other hand, taxes collected for this advertisement campaign, recue consumption, investment and make investment costly, so reduces wealth. Alexander Guerrero St Antonys College Oxford University
----- Original Message ----- From: "Gustavo Lacerda" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Thursday, November 01, 2001 2:14 AM Subject: Re: Tax with positive growth effect > In the following example, it isn't the taxing itself that promotes growth, > but its spending. > > If a state uses tax money to attract rich tourists to the area (by > advertising, for example), that could promote consumption, in such a way > that the tax promotes growth more than it hampers it. Whereas if there was > no tax (i.e. if it was voluntary), individual businesses would be reluctant > to use their money that way, even if they knew that everybody would be > better off if everybody invested their share into the collective fund > (prisoner's paradox). > > I would be interested to know if there are real-world cases of this, or of > any tax promoting economic growth. > > Gustavo > > > At 08:20 PM 31-10-01 +0200, you wrote: > > >Has anybody read/heard about a tax which does have a positive effect on > >the economic growth? The professors at my university say so, but I > >wouldn't be so sure so that's the reason I'm asking. > > > >Also I'm writing my course paper about the effects of the fiscal policy to > >economic growth. Any good links, thoughts, ideas etc. would be > >appriciated. > > > >Regards, > >Kristjan Kanarik >
