In rich countries such as the United States, changes in the level of taxation have little impact on the incentives of entrepreneurs.

Question

Quizplus · Accepted Answer

High taxes and excessive regulation tend to discourage entrepreneurship even in wealthy nations. In the United States, those states with the highest taxes and most burdensome regulations tend to drive out entrepreneurs while states with lower taxes and fewer regulations tend to attract them.

In Rich Countries Such as the United States, Changes in the Level