Further to Doug's posting regarding the fallacy of reduced taxation as
incentive for business location, it should be added that corporations
often control the "tax burden" through transfer pricing and intra-firm
trade so that lower taxes in and of themselves are not sufficient
incentive for business to relocate, as Doug rightly points out. Low wages,
access to local markets, raw materials, the profit rate and a stable
political climate are in some combination much more important than the tax
bill as it is often mistakenly claimed.
Berch Berberoglu
