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Do you have any support for your claim that taxation leads to innovation?



The sibling fields of tax evasion and tax avoidance are both full of creativity.

If you want more technical examples, taxation systems that tried to get hard at personal transportation while mostly omitting business use led to both the SUV and to modern diesel. We may dislike both outcomes and making a bigger car more comfortable isn't exactly difficult, but the technology in modern diesel engines is absolutely amazing, even if adjusted for cheating. And clearly evidence to taxation influence, as it was exclusively developed in countries that went for fuel type instead of vehicle mass for being soft on commercial transport.

PS: and just think of the things some Finns are supposedly willing to do to extract a little bang from a given quantity of alcohol, taxation is the exclusive driver of that.


I don't know about 'leads to', I mean, innovation quite clearly precedes taxation, otherwise it would be rather difficult to invent it, but taxation definitely directly funds far more innovation than the private sector does, at least if we are talking about fundamental research.


I was boldly going with a universal quantifier ("always") which might be a bit of an exaggeration, but I wasvery careful of getting the direction right. "All taxation leads to (some form of) innovation" is a very different statement from "all innovation comes from taxation".




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