Biden is preparing to propose more taxes on the wealthy and close some tax loopholes for the wealthy.
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Won’t that just mean that they will take their money and business out of the states butterscotch?
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Why would they do that?
That should see many moving out and to another more tax friendly place of domicile.
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Theoretically, people could move to avoid taxes but practically they often don’t. They’d have to uproot their entire family to avoid paying money on assets they’re not using.
Even when states have proposed wealth taxes, people don’t leave in droves.
That will upset the millionaire and billionaire democrat party donors.
More votes lost.
Priceless
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So what happened to James Dyson and Richard Branson?
To mention just a couple. Because most of our industry and commerce are controlled by the very few, you don’t need a mass migration of the wealthy. Just the odd Jeff Bezos can quite easily move to a more friendly tax country and base his operations from there. Big business can make enormous profits from just the odd percentage of reduction in tax. What would you do butterscotch, if you were Elon Musk?
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What happened to James Dyson and Richard Branson?
James Dyson and Richard Branson are British billionaires. What do they have to do with US taxes?
(I have now read more about them than I wanted to know in my lifetime.)
If I were Elon Musk, I’d stop messing up Twitter. Thank goodness I’m not him.
Are you being awkward butterscotch?
The tax rates for the wealthy in the UK are scandalous…
So Richard and James buggered off abroad didn’t they…
This is demonstrating what putting up taxes for the millionaires does, whether it’s in America or Timbuktu…
Another reason the election campaign funding process needs an overhaul. Lots of people working on this at the moment. But thankfully campaign funding didn’t determine the outcome of the last election.
According to this chart, corporate tax rates for the UK is 19% vs US at 21%. Individual rates depends on how the individual has their assets.
Branson, from the couple articles I saw, denied leaving for tax purposes. He said he just likes living in another place.
I did see an article about people leaving the UK because of high taxes. But they moved pretty close by for some of them. There’s no option for that in the US.
It does with the Democrats, all their money laundering through Ukraine etc.
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There’s thousands of people leaving California for lower taxed states such as Texas, I think Oracle was one of them recently.
The only good tax is a fair tax, having tax rates driven by ideology always ends in disaster.
Check out the Laffer Curve
California’s GDP growth was still higher than Texas in 2021.
Will President Biden’s tax proposals have any chance of being passed if the Republicans have control of the House of Representatives?
Wouldn’t the Democrats need to control both House and Senate to get something like that through?
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No, it’s doubtful. It also has legal hurdles. Like a lot of these proposals, it’s a political play ahead of elections.
Thanks Bread, explains things beautifully…
Quote:
Understanding the Laffer Curve
American economist Arthur Laffer developed a bell-curve analysis that plotted the relationship between changes in the government tax rate and tax receipts, known as the Laffer Curve. It suggests that taxes could be too low or too high to produce maximum revenue and both a 0% income tax rate and a 100% income tax rate generate $0 in receipts.
Arthur Laffer argued that tax cuts have two effects on the federal budget, both arithmetic and economic.
### Arithmetic
The arithmetic effect is immediate and every dollar in tax cuts translates directly to one less dollar in government revenue as well as decreases the stimulative effect of government spending by exactly one dollar.
### Economic
The economic effect is longer-term and has a multiplier effect. As a tax cut increases income for taxpayers, they will spend it. The increase in demand creates more business activity, spurring an increase in production and employment.
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Thanks for sharing but surely you do know that Laffer’s theories proved to be (wait for it) laughable. Giving the rich more money does not affect their spending - as guess what: they are already rich and do not have constraints on their spending (before or after a tax cut).
Now give more money to poor people and they will spend it all. That would truly stimulate the economy. So if taxed the rich more, say the top 1% of the population and raised say 50bn and then directly gave ÂŁ5k each to roughly the poorest fifth of the population then ÂŁ5k would be spent on white goods, holidays, drink - a good slice of which would go to UK retailers and manufacturers. That is what stimulating the economy looks like. Not enabling a few hundred thousand rich people to feel able to buy a slightly more expensive bottle of wine with third gastronomic meal of the week.
Laffer was only ever aired to give Reagan some bare justification for his tax cuts. Its somehow gained support from libertarians who do not understand it was always merely a front for a policy and never a serious economic theory.
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Its naive to think that billionaires keep their money in their native country.
There is an excellent book about the way the wealthy hide their money and scam the taxman. Its by Oliver Burroughs, “Money Land”. It will appeal to the hardened cynic in you. It is also truly distressing reading, unless you’re a billionaire of course.