4 ms·

Why don't wealth taxes work? Which countries repealed?

by aantix 5y ago

lbriner 5y ago
I guess they only work if everyone uses them, otherwise the danger is that a billionaire takes their business elsewhere.
baggy_trough 5y ago
For example, that well known bastion of fascist right-wing policies, France. https://en.wikipedia.org/wiki/Solidarity_tax_on_wealth https://en.wikipedia.org/wiki/Solidarity_tax_on_wealth
cscurmudgeon 5y ago
https://www.npr.org/2019/03/01/699261950/why-a-wealth-tax-didnt-work-in-europe https://www.npr.org/2019/03/01/699261950/why-a-wealth-tax-di... > ROSALSKY: In 1990, there were 12 countries in Europe that had a wealth tax. Today there are only three. Perret says they didn't work for a lot of reasons. Among other things, it costs a lot to enforce. It pushed rich people out of the country, and the wealth taxes didn't raise a lot of revenue. But > ROSALSKY: But Warren says that her proposal, which has no exemptions, will play out differently in the United States. Greg Rosalsky, NPR News. Unfortunately, nothing in her proposal justifies that. Why can't companies and people just move out of the US to avoid this? Singapore or other countries will readily welcome them.
- littlestymaar 5y ago
  > Perret says they didn't work for a lot of reasons. Among other things, it costs a lot to enforce. It pushed rich people out of the country, and the wealth taxes didn't raise a lot of revenue. In France at least, it has been a topic of political debate for decades before the recent abolition and what's clear at this point is that it costed much less than what it brought (both in terms of law enforcement, and in terms of rich people moving out of the country). > Unfortunately, nothing in her proposal justifies that. Why can't companies and people just move out of the US to avoid this? A wealth tax isn't a tax on a company, it's a tax on the owner of the company so moving the company won't help here. And the owner leaving the US won't help either, since they will still have to pay taxes as long as they remain a US citizen. Renouncing to US citizenship would still be an option of course, but I'd expect the opportunity cost would be much higher than the cost of the tax itself.
  - cscurmudgeon 5y ago
    > . Renouncing to US citizenship would still be an option of course, but I'd expect the opportunity cost would be much higher than the cost of the tax itself. Why? In 2021, a lot of countries have US levels or better infrastructure. The owner can reside outside the US and still make products for the US and the world. > Americans Gave Up Citizenship in Record Numbers in 2020, Up Triple From 2019, Reports Tax Specialists Americans Overseas https://www.prnewswire.com/news-releases/americans-gave-up-citizenship-in-record-numbers-in-2020-up-triple-from-2019-reports-tax-specialists-americans-overseas-301222817.html https://www.prnewswire.com/news-releases/americans-gave-up-c...
- ulkram 5y ago
  not an expert, but I thought the US is unique in that you can't escape taxes unless you renounce citizenship. and even then, there's an exit tax
  - cscurmudgeon 5y ago
    Renounce, pay the tax once and live free?
- cscurmudgeon 5y ago
  Of course any reasonable opposition gets downvoted and responses get ignored.
puchatek 5y ago
Germany suspended it's wealth tax and some parties are now contemplating whether to reactivate it. Might be just pre-election noise but who knows

Why don't wealth taxes work? Which countries repealed?

by aantix 5y ago

Why don't wealth taxes work? Which countries repealed?

I guess they only work if everyone uses them, otherwise the danger is that a billionaire takes their business elsewhere.

baggy_trough 5y ago

For example, that well known bastion of fascist right-wing policies, France. https://en.wikipedia.org/wiki/Solidarity_tax_on_wealth https://en.wikipedia.org/wiki/Solidarity_tax_on_wealth

cscurmudgeon 5y ago

https://www.npr.org/2019/03/01/699261950/why-a-wealth-tax-didnt-work-in-europe https://www.npr.org/2019/03/01/699261950/why-a-wealth-tax-di... > ROSALSKY: In 1990, there were 12 countries in Europe that had a wealth tax. Today there are only three. Perret says they didn't work for a lot of reasons. Among other things, it costs a lot to enforce. It pushed rich people out of the country, and the wealth taxes didn't raise a lot of revenue. But > ROSALSKY: But Warren says that her proposal, which has no exemptions, will play out differently in the United States. Greg Rosalsky, NPR News. Unfortunately, nothing in her proposal justifies that. Why can't companies and people just move out of the US to avoid this? Singapore or other countries will readily welcome them.

littlestymaar 5y ago
> Perret says they didn't work for a lot of reasons. Among other things, it costs a lot to enforce. It pushed rich people out of the country, and the wealth taxes didn't raise a lot of revenue. In France at least, it has been a topic of political debate for decades before the recent abolition and what's clear at this point is that it costed much less than what it brought (both in terms of law enforcement, and in terms of rich people moving out of the country). > Unfortunately, nothing in her proposal justifies that. Why can't companies and people just move out of the US to avoid this? A wealth tax isn't a tax on a company, it's a tax on the owner of the company so moving the company won't help here. And the owner leaving the US won't help either, since they will still have to pay taxes as long as they remain a US citizen. Renouncing to US citizenship would still be an option of course, but I'd expect the opportunity cost would be much higher than the cost of the tax itself.
- cscurmudgeon 5y ago
  > . Renouncing to US citizenship would still be an option of course, but I'd expect the opportunity cost would be much higher than the cost of the tax itself. Why? In 2021, a lot of countries have US levels or better infrastructure. The owner can reside outside the US and still make products for the US and the world. > Americans Gave Up Citizenship in Record Numbers in 2020, Up Triple From 2019, Reports Tax Specialists Americans Overseas https://www.prnewswire.com/news-releases/americans-gave-up-citizenship-in-record-numbers-in-2020-up-triple-from-2019-reports-tax-specialists-americans-overseas-301222817.html https://www.prnewswire.com/news-releases/americans-gave-up-c...
ulkram 5y ago
not an expert, but I thought the US is unique in that you can't escape taxes unless you renounce citizenship. and even then, there's an exit tax
- cscurmudgeon 5y ago
  Renounce, pay the tax once and live free?
cscurmudgeon 5y ago
Of course any reasonable opposition gets downvoted and responses get ignored.

puchatek 5y ago

Germany suspended it's wealth tax and some parties are now contemplating whether to reactivate it. Might be just pre-election noise but who knows