That's an interesting point you're making and it's no doubt true in general. And there are other reasons as well why companies stay in high cost locations (like central London or NYC).
But what's all the more important is how much of the taxes a company pays actually buys something they would otherwise have to buy themselves. The same goes for personal income tax.
The problem with paying for things via taxes is that everybody is paying the same regardless of how much of it they actually consume. For instance, software companies benefit a lot from free public education but very little from good roads and bridges. For a postal service it's the other way around. Of course there are always indirect benefits that mitigate this effect.
Some things are just much more efficient when paid for by everyone collectively. But at the same time individual choices become less important. Individuals and companies benefit less from good choices and suffer less from bad ones. There's less incentive for a postal service to avoid unnecessary trips if roads are free and fuel is subsidised. There's less incentive for individuals to get a useful degree rather than studying ancient persian cults.
So it's a balance. But I'm concerned that here in europe there is a tendency of making so many choices for everyone collectively that being different becomes very expensive. I don't want to save for my pension because I don't want to retire. Ever. Making that decision for myself is near impossible in europe. I hate that.
But what's all the more important is how much of the taxes a company pays actually buys something they would otherwise have to buy themselves. The same goes for personal income tax.
The problem with paying for things via taxes is that everybody is paying the same regardless of how much of it they actually consume. For instance, software companies benefit a lot from free public education but very little from good roads and bridges. For a postal service it's the other way around. Of course there are always indirect benefits that mitigate this effect.
Some things are just much more efficient when paid for by everyone collectively. But at the same time individual choices become less important. Individuals and companies benefit less from good choices and suffer less from bad ones. There's less incentive for a postal service to avoid unnecessary trips if roads are free and fuel is subsidised. There's less incentive for individuals to get a useful degree rather than studying ancient persian cults.
So it's a balance. But I'm concerned that here in europe there is a tendency of making so many choices for everyone collectively that being different becomes very expensive. I don't want to save for my pension because I don't want to retire. Ever. Making that decision for myself is near impossible in europe. I hate that.