What Do We Do If the Rich Start to Leave?

     

The numbers are small. A modern record, to be sure, and an embarrassment to some. But nothing to be alarmed about. Better to just curse their greed, slap an exit tax on their assets, and move on. There are plenty more where they came from.

But what if more of them start to leave?

500 American citizens and green card holders in the last quarter of 2009 said goodbye to America forever. Not many, but double the number of expatriations in all of 2008. Good riddance, other millionaires will take their place.

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But what if more of them start to leave?

Businesses may have been shifting jobs out of the country for decades but their fat cat CEOs still live here, right? I don’t believe many of them would give up US citizenship just because they refuse to pay their fair share. What are they going to do, learn Chinese?

But what if more of them start to leave?

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1% of US income tax filers pay 40% of our nation’s income taxes. It’s only fair given how much money they make. So what if 40% of filers actually get handouts from the IRS? Didn’t our President come out on the campaign trail and promise he was going to spread the wealth around? He won the election didn’t he? Everybody knew what the deal was.

But what if more of them start to leave?

When the Bush tax cuts expire top marginal tax rates are going to shoot up. Add in city, state and local taxes the rich are going to have to fork over 50 cents of every last dollar earned. Inheritance taxes are scheduled to soar when death tax reform expires – all on money that was already taxed. An extra 3.8% Medicare tax got slapped on dividends and capital gains courtesy of healthcare reform. Blah, blah, let the rich squawk. We outnumber them and somebody has to pay the bills.

But what if more of them start to leave?

Congress is trying to triple the taxes hedge fund managers, private equity firms, and venture capitalists pay on their gains. Who cares, these tycoons don’t have enough votes to stop it. Sure, the smart ones are setting up shop in Asia but they’re never going to move there, right? The US will always be the best place in the world to start a business, won’t it?

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April 15, 2010