How does a country’s tax structure affect who decides to immigrate into the nation or emigrate out of the nation? Contrast, for example, nations A and B. Assume that nation A applies a 20 percent tax on every dollar of income earned by an individual. Nation B applies a 10 percent tax on the first $40,000 per year of income and a 40 percent tax on all income above $40,000 per year earned by an individual. Start by computing the tax bill in each country that must be paid by a person earning $40,000 per year and the tax bill that must be paid by a person earning $100,000 per year. Then consider the more general issue: If the language, culture, and climate of the two nations are similar, and if a person can choose to live on one side or the other of a river separating the two nations, who is more likely to choose to live in A and who is more likely to choose to live in B? To what extent does your reasoning apply if an ocean, rather than a river, separates the two countries? Does it apply if the language, culture, or climate in the two nations differs? Explain.