4 ms·

A wealth tax will fail for the same reason the income tax has failed. The extremely wealthy will move their wealth into complex multinational financial vehicles

A wealth tax will fail for the same reason the income tax has failed. The extremely wealthy will move their wealth into complex multinational financial vehicles and strut up to the tax authority saying, "See? I own very little." It becomes the legislative cat and mouse game, which governments lose when up against those with massive assets with which to lobby. There is not a good answer that I have found to the taxation issue. Wealth is self-sustaining over the short term like advantageous mutations are self-sustaining in biological systems.

jlmorton 5y ago
> The extremely wealthy will move their wealth into complex multinational financial vehicles In Elizabeth Warren's proposal, they would be subject to a 40% exit tax on the wealth that they moved. If they didn't pay the exit tax, that would be fraud.
- f38zf5vdt 5y ago
  As with most laws, the intention is noble but the outcome may not be. Every time a new law seems to be passed "strengthening" the tax code, it seems mysteriously effective against those who can't afford to pay a law firm's retainer and a lobbying group's salaries.
- frockington1 5y ago
  Who would wait long enough after that bill passed to keep their wealth in America? The second it went through congress the money would start pouring out
  - jlmorton 5y ago
    To be clear, in Warren's wealth tax proposal, it doesn't matter where the wealth is located. If you're an American citizen, you would be required to pay the tax on all of your wealth above $50 million, no matter where it is. The alternative is to move your money overseas and renounce your American citizenship, at which point you would owe a 40% exit tax. One could certainly hide their assets overseas, but that would be tax fraud, and if discovered would result in prison time for both accountant and wealthy individual.

4 ms·

A wealth tax will fail for the same reason the income tax has failed. The extremely wealthy will move their wealth into complex multinational financial vehicles

by f38zf5vdt 5y ago

jlmorton 5y ago
> The extremely wealthy will move their wealth into complex multinational financial vehicles In Elizabeth Warren's proposal, they would be subject to a 40% exit tax on the wealth that they moved. If they didn't pay the exit tax, that would be fraud.
- f38zf5vdt 5y ago
  As with most laws, the intention is noble but the outcome may not be. Every time a new law seems to be passed "strengthening" the tax code, it seems mysteriously effective against those who can't afford to pay a law firm's retainer and a lobbying group's salaries.
- frockington1 5y ago
  Who would wait long enough after that bill passed to keep their wealth in America? The second it went through congress the money would start pouring out
  - jlmorton 5y ago
    To be clear, in Warren's wealth tax proposal, it doesn't matter where the wealth is located. If you're an American citizen, you would be required to pay the tax on all of your wealth above $50 million, no matter where it is. The alternative is to move your money overseas and renounce your American citizenship, at which point you would owe a 40% exit tax. One could certainly hide their assets overseas, but that would be tax fraud, and if discovered would result in prison time for both accountant and wealthy individual.