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I say "see ya!" and wave goodbye. You think people living in NYC, for example, the financial (and one of the major cultural capitals) of the entire world (not
by nielsbot 1y ago
I say "see ya!" and wave goodbye.
You think people living in NYC, for example, the financial (and one of the major cultural capitals) of the entire world (not to mention all the other benefits of US residency) are going to bother with packing up their lives and moving overseas because the taxes are too high? Not to mention these people will still have obscene wealth in all likelihood.
Some might, but I don't think we should wring our hands over it.
Rather than worrying about "capital flight" let's instead imaging all the good that could come of us having a more more equal wealth and income distribution.
- hollerith 1y agoMaybe the reason it is the financial capital of the entire world is that historically the tax regime let people keep most of the money they earned.
- TimorousBestie 1y agoIncome tax rates and corporate tax rates were higher during the post-war era than they are now.
- bpt3 1y agoEffective tax rates weren't much different, which is what matters.
- TimorousBestie 1y agoThe effective income tax rate was still on the whole higher for the wealthy in the 20th century. Depending on where you put the percentile cutoff, I’m seeing peak-to-troughs between 5-20%.
- hollerith 1y agoAnd the reason most governments reduced the rate was because economists argued that the higher rate reduces economic activity so much that total tax revenue (collected by the government) is actually higher at the reduced rate. Look up the "Laffer curve".
- 1718627440 1y agoBut taxes don't exist as an income flow, but to give incentives. Taxes exist to reduce economic activity for goods where you want that.
- bpt3 1y agoWhat gives you that impression? I get that they are used that way at times, but the core purpose of taxation is to generate revenue for the government.
- 1718627440 1y agoBecause that's the definition of the term. The other concept is called duties.
- bpt3 1y agoNo, it's not. One example definition of tax: a charge usually of money collected by the government from people or businesses for public use. A duty is a type of tax.
- 1718627440 1y ago> a charge usually of money collected by the government from people or businesses for public use. Yes and what makes it a tax is the intention. If it is to regulate a market to be more free, it's a tax, otherwise it's a duty.
- bpt3 1y ago
- p_j_w 1y agoHave you any evidence for this proposition?
- bpt3 1y agoYes, they've been moving to Florida in droves for the last decade plus. Eventually you'll run out of other people's money to spend, and will be forced to face the reality of your own self-sufficiency.
- fireflash38 1y agoAh yes we're held hostage by the rich. Do what we say, or we take our ball and go home.
- bpt3 1y agoIf you're going to balance your budget on their backs, yes: https://taxfoundation.org/blog/one-rich-guy-moves-new-jersey-budget-peril/ https://taxfoundation.org/blog/one-rich-guy-moves-new-jersey... Europe figured this out long ago and has a very broad tax base (aka higher taxes on the middle class) to fund their social welfare programs but somehow you never see that proposed as a solution by the middle class in the US...