New paper from @gabriel_zucman cited by @Ed_Miliband showing that the idea that companies are mobile is wrong. They shift profits, but it’s much harder to shift jobs/factories - so govts shouldn’t be so focused on cutting corporate tax rates. http://gabriel-zucman.eu/files/TWZ2018.pdf … @alexcobham
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I think it's more that the argument that companies move jobs/factories primarily on the basis of the tax rate doesn't stack up. They might profit shift for that reason. If they are going to move jobs, it's for other reasons e.g. cheaper labour.
I don't think this follows from TWZ's research. They find that profits but not tangible capital move to lower tax states etc. But this does not mean that capital (& jobs) don't move between higher tax states. As Rita said tax effects marginal.