And many of those are bad. Ask people in the visual effects industry how they feel about Canada's tax breaks for film production.
These tax breaks incentivize wasting money on travel and uprooting families to trot around the globe chasing favorable tax laws.
It's one thing to set a low tax rate, it's another thing to create the tax equivalent of a "loss leader" as marketing for a broader economy. I'm not saying it's immoral, but it causes chaos in the pricing signals and should be done carefully.
These tax breaks incentivize wasting money on travel and uprooting families to trot around the globe chasing favorable tax laws.
It's one thing to set a low tax rate, it's another thing to create the tax equivalent of a "loss leader" as marketing for a broader economy. I'm not saying it's immoral, but it causes chaos in the pricing signals and should be done carefully.