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Comment by skh

Why does a 13% tax to California bother you if a 13 percentage point increase in tax to some other entity doesn’t? Is it dislike of California? Dislike of state taxes?

This reminds me of an experiment I read in - I think - Nudge. A random group of people were given the scenario of being at a store and about to buy a box of chocolate for $10. Just before they purchase it they find out they can buy it at a store a few blocks away for $5. Most said they would go to the other store.

Another group of random people were asked the same scenario but with a tuxedo costing $1500. The competitor store a few blocks alway sold the tuxedo for $1495. Most said they would not go to the other store for just a $5 decrease in cost.

parent skh 7 years ago

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