This is tautologically true in the limiting case of infinite cost.
It leads to an interesting way to think about company and civic health as well. Instead of focussing purely on incentives, one might assume that many are inclined to do good stuff anyway, and then ask: are we lowering the cost of all desired behavior as much as possible? And are we doing it for as many people as possible?
It seems like there’s a straightforward/obvious corollary that reverses the sign on both clauses. (Walk the curve in the opposing direction.)
I remember this theater on things which were suspected to be too expensive with insiffiufficient ROI to implement, except that all the time wasted by multiple people arguing in Jira tickets, sitting in meetings, and writing specifications was likely far more expensive than just building and testing the thing.
For some reason, there seems to be a strong and automatic tendency for older and larger organizations to drift toward petrification through bureaucratization.
... must be a satire post, right? This is just the most plain and intuition result.
Not unlike hiking taxes on the rich, seeing them vote with their feet, and revenue subsequently catering.
But as long as we reward politicians for delivering blame more than results, this political folly will continue.
Until Strein's Law[1] kicks the teeth in.
Moreover, when the destination jurisdiction does use a different currency, that increases demand for the destination currency and reduces demand for the original currency, i.e. it devalues the original currency. And then even if your revenue was the same in nominal dollars it would have declined in real dollars.
On top of that, non-uniform tax rates break your model wide open. The entities who leave can exchange their currency (independently of whether it gets devalued) for assets, so that the amount of currency (as distinct from wealth, since it's an equal value exchange) increases in the hands of the people who pay lower tax rates. Which likewise has a negative impact on revenue, since they pay lower tax rates.