alt Hacker NewsIt's been argued a lot that such a move would cause a good portion of American billionaires to just pack up and move to another country. Rich people are mobile in a way that poor people are not.
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Good riddance. They can go interfere with someone else's government.
I don't think its that simple and is overly simplistic. If it was all about getting a better deal why wouldn't they have all left for Switzerland by now? Objectively, its a better deal than what the US offers - even on tax rates.
So where is the wealth of the rich stored?
Where does their income come from? (e.g. investment growth, etc.)
Can't you basically tax their income, and quadruple that tax if they move abroad and want to move their money out of the U.S.?
(I'm guessing it's not easy, but I also guess the reason it's not done is because the ultra rich have so much influence on the politicians and tax code... not for whatever other logistical reasons might exist.)
Sure, they can leave, but if their companies want access to the US market they have to pay taxes. Capital flight is a red herring.
this argument is along the lines of "if theres global warming why is it cold outside today"
The rich prosper precisely because they are in the US.
Plus, if you do that you're a frigging communist. On the other hand, it's so much better to call neighbors, allies and everyone else people pillaging/raping the country. People like drama :)
If the billionaires pack up and move to another country, then those who are willing to pay their due taxes and operate with a lesser profit margin would take the place they left in the market. There is no need to oblige sociopathic profiteers because they threaten to leave.
And, where will they go, really? There are considerable taxes in every country that billionaires would consider. And if they choose to cram into some small island tax haven in the Caribbean, the US can easily pressure that tax haven to do anything it wants.
> Rich people are mobile in a way that poor people are not.
Yet it's poor people that you see migrating most.
The US is unique in levying taxes on its nationals wherever they are in the world.
Although you've just made an argument for capital controls. We could call them "dollar export tariffs".