I will give you an example out of my life. I was going to buy a condo and rent it as an apartment. After my accountant ran the figures, I WOULD make a profit. However, after taxes it would amount to 100 bucks a week.
Now, I could deliver Pizza two nights a week and make 200-300 Dollars TAX FREE! Of course, I am a bit too old but doesnt that tell you something?
What is the point of me investing capital on that scale and risk to get less then a PIZZA BOY!
Of course, I am looking at other states with less restrictive codes. So, my home state loses out on ANY revenue from my ventures.
I am familiar with the LAffer Curve and basic economic theory but the things I am describing are NOT thoery, but reality.
BTW, I am not trying to be antagonistic, I just come across that way. :D