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I don't necessarily disagree with him but his analysis leaves out a very important point. In 1960 it wasn't really possible for rich person to live in a country
by TomOfTTB 16y ago
I don't necessarily disagree with him but his analysis leaves out a very important point. In 1960 it wasn't really possible for rich person to live in a country like Singapore or Taiwan and still maintain relationships in the United States. That's no longer the case. With cheap flight travel, video chat, and other means of communication it's very easy for someone with the financial means to travel back and forth with very little effort. And countries like Singapore, Hong Kong, and Taiwan know this.
Given that fact it's in those countries best interest to woo rich Americans. Which means the United States now has to compete.
Meaning the US can't reasonably raise the tax rate on the top 1% higher than what it would cost them to fly back and forth from the United States if they made a place like Taiwan their own.
- krakensden 16y agoDoes anybody actually do this? It seems like it would be easier just to pay an accountant to hide your money convincingly in some sort of offshore account or company than to do all that pesky flying, and awkward moving to the other side of the world. Which brings me to another point, the rich are people too, and I doubt very many will ever care enough about their money to uproot their entire social life.
- TomOfTTB 16y agoThe people discussed in this article are people are rich enough to be able to influence politicians with their own personal money. To people with that kind of wealth I don't think flight travel and hotel expenses are that big a deal. They could easily continue to live most of their life in the United States and simply call a foreign country their home for tax purposes.
- blueben 16y agoYou aren't very familiar with the lifestyles of the modern rich. Their social circles are other rich people, not tied to a single location. This is the kind of wealth that can check in to any hotel at a moment's notice, and maintain any number of apartments internationally.
- blueben 16y agoSo our choice is give the rich what they want, or they'll leave? Lacking a more compelling argument, I'll be the first at the airport to wave them off...
- bconway 16y agoIf the rich all left, they'd take their 80% tax burden with them. Who would make up the difference?