4 ms·

Very well studied; pretty much the decline of california right now; and city of detroit as examples where this happens. A great example was Sweden who implemen

Very well studied; pretty much the decline of california right now; and city of detroit as examples where this happens. A great example was Sweden who implemented a "financial transaction tax" of ~2% which was insane. Stockholm exchange dropped well over 60%, about 50% of which moved to London UK. Liquidity in stockholm essentially went to 0, which means no more retirees. A shocking amount of businesses fled sweden and they had to repeal their own tax because it was essentially crippling their entire country. It was so bad that the government was forced to greatly deregulate the financial markets to attract businesses back. In the end they killed their own stock market and it had to be sold to a private entity. 10 years after their idiotic tax did they even start to see recovery. Better yet, this recovery was mostly dotcom bubble stocks that eventually popped only years later further setting back stockholm. Recovery was probably about 2005? Luckily they were significantly impacted by the financial crisis. tldr: a 2% tax on millionaires caused so many to flee that even after repealing, 20 years of damage continued.

hermitcrab 1y ago
>tldr: a 2% tax on millionaires caused so many to flee that even after repealing, 20 years of damage continued. A 2% financial transaction tax is very different a 2% income tax though, isn't it?
- incomingpain 1y ago
  >A 2% financial transaction tax is very different a 2% income tax though, isn't it? The severity of the tax is what makes the story worth telling. It's important to note as well. When you're talking about "millionaires" it's extremely rare for anyone to be under 40. The 68 year old retiree is who a millionaire tax hits; but they are specifically the people who are dreaming to move to florida or a tropical island. All of these destinations are actively doing marketing to attract such people to spend their savings in their country. Florida for example calls it's EB5 visa where you move your money out of sweden and into the usa and you permanently stay in the usa.
  - hermitcrab 1y ago
    >The severity of the tax is what makes the story worth telling. I wouldn't call an extra 2% tax on income above $1m per year severe. US taxes have been much higher than they are now: https://www.wolterskluwer.com/en/expert-insights/whole-ball-of-tax-historical-income-tax-rates https://www.wolterskluwer.com/en/expert-insights/whole-ball-...
    - deleted 1y ago
      [deleted]
    - josefritzishere 1y ago
      You will notice that Americas economic decline largely begins when Regan lowered the top rate in 1980, starting the tread that ends up where we are today.
      - _DeadFred_ 1y ago
        We never get analysis on what returns trickle down economics have given us, but tons and tons of thought and analysis on why we have to keep doing it. You'd think after 40 years there would be some numbers to work with. Instead they sell it with fear 'the rich will leave'. If there is a real economic benefit you would think they would try and sell it with the REAL benefits it has brought us these last 40 years.

hermitcrab 1y ago

>tldr: a 2% tax on millionaires caused so many to flee that even after repealing, 20 years of damage continued. A 2% financial transaction tax is very different a 2% income tax though, isn't it?

incomingpain 1y ago
>A 2% financial transaction tax is very different a 2% income tax though, isn't it? The severity of the tax is what makes the story worth telling. It's important to note as well. When you're talking about "millionaires" it's extremely rare for anyone to be under 40. The 68 year old retiree is who a millionaire tax hits; but they are specifically the people who are dreaming to move to florida or a tropical island. All of these destinations are actively doing marketing to attract such people to spend their savings in their country. Florida for example calls it's EB5 visa where you move your money out of sweden and into the usa and you permanently stay in the usa.
- hermitcrab 1y ago
  >The severity of the tax is what makes the story worth telling. I wouldn't call an extra 2% tax on income above $1m per year severe. US taxes have been much higher than they are now: https://www.wolterskluwer.com/en/expert-insights/whole-ball-of-tax-historical-income-tax-rates https://www.wolterskluwer.com/en/expert-insights/whole-ball-...
  - deleted 1y ago
    [deleted]
  - josefritzishere 1y ago
    You will notice that Americas economic decline largely begins when Regan lowered the top rate in 1980, starting the tread that ends up where we are today.
    - _DeadFred_ 1y ago
      We never get analysis on what returns trickle down economics have given us, but tons and tons of thought and analysis on why we have to keep doing it. You'd think after 40 years there would be some numbers to work with. Instead they sell it with fear 'the rich will leave'. If there is a real economic benefit you would think they would try and sell it with the REAL benefits it has brought us these last 40 years.