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Unless all developed countries organize to tax wealthy people, why would wealthy people invest in countries that tax their wealth away? If countries don't play

Unless all developed countries organize to tax wealthy people, why would wealthy people invest in countries that tax their wealth away? If countries don't play ball with rich people, they can just move to another country that is more "business friendly" (including low taxes). What am I missing?

maxxxxx 8y ago
You are missing the fact that tax is not the only factor for people to stay. California is an expensive state by most measures but somehow it doesn't seem to have a problem keeping rich people in state.
- rvense 8y ago
  California has high taxes and great universities. This is why I'm quite perplexed that, even though many in my country state that they want to copy California's success, they are trying to do so by (among other things) lowering taxes and ruining our universities.
- nine_k 8y ago
  How many big corps are incorporated in California? How many rich people control their wealth via some Cayman islands subsidiaries, etc? Having a nice $30M home in California is likely a small expense for the ultra-rich the article talk about.
  - maxxxxx 8y ago
    Are you saying California is not a state with a lot of people having well-paid jobs and a lot of wealthy people? Would the state do better if it decided to lower taxes for the wealthy?
- jerf 8y ago
  https://www.forbes.com/sites/patrickgleason/2018/07/06/millionaires-flee-california-after-tax-hike/ https://www.forbes.com/sites/patrickgleason/2018/07/06/milli... Not the only ones either: https://www.cnbc.com/2018/03/19/californians-fed-up-with-housing-costs-and-taxes-are-fleeing-state.html https://www.cnbc.com/2018/03/19/californians-fed-up-with-hou... Not saying it's a 100% exodus, but I'd definitely not call it "no problem".
hakfoo 8y ago
The people can move, but the assets can't really. If Amazon or Apple sets up shop in some"friendly" jurisdiction that's underwater at high tide, most of their operations and sales are still coming from other countries, and the taxman can intervene there. The inventory coming into the country; their offices; hell, even their patents/trademarks/copyrights could be captured by a state actually out for blood.

maxxxxx 8y ago

You are missing the fact that tax is not the only factor for people to stay. California is an expensive state by most measures but somehow it doesn't seem to have a problem keeping rich people in state.

rvense 8y ago
California has high taxes and great universities. This is why I'm quite perplexed that, even though many in my country state that they want to copy California's success, they are trying to do so by (among other things) lowering taxes and ruining our universities.
nine_k 8y ago
How many big corps are incorporated in California? How many rich people control their wealth via some Cayman islands subsidiaries, etc? Having a nice $30M home in California is likely a small expense for the ultra-rich the article talk about.
- maxxxxx 8y ago
  Are you saying California is not a state with a lot of people having well-paid jobs and a lot of wealthy people? Would the state do better if it decided to lower taxes for the wealthy?
jerf 8y ago
https://www.forbes.com/sites/patrickgleason/2018/07/06/millionaires-flee-california-after-tax-hike/ https://www.forbes.com/sites/patrickgleason/2018/07/06/milli... Not the only ones either: https://www.cnbc.com/2018/03/19/californians-fed-up-with-housing-costs-and-taxes-are-fleeing-state.html https://www.cnbc.com/2018/03/19/californians-fed-up-with-hou... Not saying it's a 100% exodus, but I'd definitely not call it "no problem".

hakfoo 8y ago

The people can move, but the assets can't really. If Amazon or Apple sets up shop in some"friendly" jurisdiction that's underwater at high tide, most of their operations and sales are still coming from other countries, and the taxman can intervene there. The inventory coming into the country; their offices; hell, even their patents/trademarks/copyrights could be captured by a state actually out for blood.