Among the many nice things about being a Federation Fellow, one of the nicest is the way it infuriates some of my opponents[1]. I mentioned the IPA a while back and now Peter Saunders of the Centre for Independent Studies has had a go in today’s Fin. He’s responding to a piece of mine developed out of this post on bracket creep, though the article switched the focus from Saunders to an earlier presentation of the same argument by Peter Costello. The same piece produced a somewhat incoherent letter from Sinclair Davidson of RMIT, who couldn’t come up with anything better than to say that my article was “drivel”.
Anyway, Saunders wants to argue that tax rates and economic incentives influence location decisions[2] and decides to use me as an example, saying that I moved to Queensland to take up the Fellowship[3] (he even quotes from this blog). In fact, as my handful of long-term readers may recall, I moved to Brisbane in late 2002 and didn’t get the Fellowship until March 2003. My reasons for moving were much the same as those of the other 50 000 people who made the same move that year, and are summed up here.
The Fin is subscription only, but I’ve added some relevant extracts over the fold
fn1. It’s not very noble of me to take pleasure in annoying my opponents, but I can’t deny that I do.
fn2. To be boringly serious, I don’t, of course, deny that incentives affect decisions, but I think there are many more significant incentives in our system than the top marginal tax rate.
fn3. Saunders is open to a tu quoque here, having recently moved to this high-tax hell from the dynamic UK.
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