State Income Taxes and Economic Growth
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Provided that the increased productive effi ciency of the cor- poration leads to growth in overall societal income and wealth, and that the income and wealth is fairly distributed within the society, it should then benefi t all or most members of the society in the long run. Th e high executive salary may then be justifi ed in consequentialist terms by being in the long term interests of all members of the society. Philosophically economic effi ciency as a justifi cation for executive salaries is, in terms of distributive justice, a form of incentive theory,...
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