#taxes #billionaires #US #wealth #taxation #economy #finance #movingabroad
Hey there! 💰 When it comes to the topic of raising taxes on billionaires in the US, the question of whether they would simply move to a country with lower taxes is a valid concern. Let’s dive into the various factors that could potentially prevent billionaires from fleeing to tax havens!
Reasons Why Billionaires Can’t Easily Escape Higher Taxes:
1. Ties to the US:
– Many billionaires have deep roots in the US, from their businesses to their families and communities. Moving abroad is not a decision that can be taken lightly.
– Significant investments and assets may be tied up in the US, making it challenging to uproot everything in pursuit of lower taxes.
2. Global Tax Laws:
– Many countries have agreements in place to prevent individuals from avoiding taxes by moving their wealth to tax havens.
– The global push for greater tax transparency and crackdown on tax evasion further limits the options for billionaires looking to escape higher taxes.
Real-Life Examples:
– Warren Buffett, one of the world’s richest men, has openly advocated for higher taxes on the wealthy in the US. Despite having the means to move elsewhere, he has chosen to stay and contribute to the country’s economy.
– Elon Musk, another billionaire known for his ventures in the US, continues to expand his business empire within the country, showcasing a strong commitment to the market where he has found success.
In conclusion, while the prospect of billionaires moving to countries with lower taxes is a possibility, it is not always a practical or feasible solution for all individuals in this bracket. The ties to their home country, legal constraints, and ethical considerations can all play a role in their decision-making process.
So, what do you think about the balance between taxing the ultra-wealthy and preventing offshore movements? Let’s keep the conversation going! 💬💡
There are not a lot of countries with no taxes on rich people that are not third world, poor and lack infrastructure.
If you like to own a House near a town with schools and a grocery store, you better pay your taxes.
Every country has the same question, and practically billionaire do not move that much away.
In many countries , a 50% tax-rate is the low upper class. so having it only for billionaire is like way nicer than in the rest of the world
They’d still owe taxes to the US government unless they renounced their citizenship.
The United States is one of the few countries that taxes income of its citizens no matter where the income is earned.
Corporate taxes were 90% after world war 2.
It’s funny how everyone seems to forget that.
It’s intriguing to consider the economic seesaw that tax policy creates. On the one hand, high taxes can drive away innovation and capital, but on the other, without sufficient tax revenue, a nation can’t maintain the infrastructure and services that help businesses thrive. It’s a fine line between equitable taxation and pushing economic contributors out. Moreover, it’s not just corporate taxes; personal income taxes on the ultra-rich also play a significant role. Though potential tax evasion and offshore schemes complicate matters, the solution isn’t to surrender to a race to the bottom. Perhaps the key is finding a balance that allows for competitive growth without undermining the social contract a tax structure that scales with wealth but doesn’t penalize success to the point of stifling economic contribution. History has shown varying results, but the ultimate goal should be a symbiotic relationship between government and wealth creators for the betterment of the entire nation’s socioeconomic fabric.
It doesn’t tax their stock wealth which is the number we most commonly hear when hearing about their net worth.
If you tax that, they will move their corporate offices and bail immediately to tax havens.
First there is an exit tax. If you move to another country and try and give up your citizenship there is a 50% tax on assets you have in the United States. The second reason is the United States has the lowest taxes in the world I’m billionaires and the best protections for wealth.
That 50% is pretty much pointless. Since most billionaires have their income coming in from stocks and other sources.
Americans have to file taxes no matter what country you live in. Depending on how much you make abroad you may or may not pay taxes but have to file every year. Americans who live abroad have double tax filing to make, in the US and in the country they live in and depending on how much you make you will pay taxes in one or both countries. To get out of paying taxes in the US you have to renounce your citizenship but can pay a huge exit tax on top of the 2k fee to give up citizenship. I think one reason they make US citizens file and/or pay taxes abroad was because of rich people. Don’t take my word for it but in the end it has made things difficult for regular American living abroad.
1. That would be incredibly expensive to move their estate and businesses.
2. That would probably piss off many of their family members.
3. They’d have to renounce their US citizenship to not be taxed in the other country anyways.
4. America has one of the best economies so that might be a dumb move and tank their business.
5. Many other attractive countries to move to have even higher taxes.
6. Some wealth tax proposals have a built-in “exit tax” that would heavily penalize anyone trying to move out and dodge them.
7. In theory, the taxes would go to making the country a better place, and improve the workforce so they would end up benefiting anyways.
8. They’ll still be disgustingly rich even with much higher taxes. A lot of their desire to be rich is to outdo other rich people. If they’re all taxed similarly then some won’t mind as much.
I can’t have this discussion until I’m sure people understand *progressive tax rates*
US has global taxation. You have to pay them no matter where you live.
Because it literally doesn’t matter if they do.
They can only make their money, where people have money. So, their income will still be tied to the high tax place, if that’s where they make their money.
Like, if you made a billion dollars selling fiddle widgets in California, it wouldnt do you any good, to live in Washington (no state income tax) to dodge paying the taxes, because, you sold them in Cali, and will pay the taxes there.
And it would dumb to say, “oh, ok, so I made a billion dollars selling fiddle widgets in Cali, but I hate the taxes, so I’ll move to Somalia and sell them there”–because, no one can afford to buy the widgets there. The taxes in Cali enable the infrastructure, and legal system to protect your ability to make that income, possible. A low tax place just won’t have it, and you likely won’t have any success there.
Like move their stock portfolios with them? How are they gonna do that?
Most have become rich off the businesses they own here. We the PEOPLE made them rich and we have the best economy
Taxes on what exactly? Income? Assets? Capital gains?
A few things off the top of my head:
– not everyone wants to leave their whole family behind
– not everyone has the money to move to another country
– the countries with low tax rates are probably worse than the US in terms of social services
– most Americans don’t know a second language
– the countries have their own immigration systems and it can take years to become a citizen
– some countries might not want you
– taxes is not a refugee status so you can’t seek asylum
– your degrees and professional licenses may not be transferable in a new country
– there’s no guarantee you’ll get a job in a new country
People underestimate how difficult it is to emigrate. Basically the only people who can up and move to a new country are the super wealthy, and contrary to what the news would have you believe there really aren’t that many of them for it to matter. And they don’t pay taxes anyway.
The countries they would move to already have higher taxes.
It doesn’t even need to be 50%, just a percent or two higher than what they currently pay.
Billionaires do have a smaller tax rate than most of us. As low as 14%. Most of that is due to charitable contributions etc. I think the highest I’ve read is 28%, which as a percentage of income is lower than most of us. But total dollar wise, 50% of the top earners $300k+ paid ~97% of all Federal taxes last year, while the remaining 50% paid the remaining 3%. And to go further, the top 1% paid more in taxes than the bottom 40%.
If you look at total dollars, you could easily move up the top rate a percent or two, and let anyone making less than $300k a year to pay no taxes. Not sure if that’s equality, but it’s a way to give security to a good percentage of the population, while keeping total Federal tax dollars the same.
They’d have to live in the other country.
Well just make it so they or their kids can never reenter USA and we will see howmany of them want that haha.
One millionaire moved all his money to Costa Rica and renounced his citizenship and moved there. Now he bribed the government there that he would be their ambassador. He wanted to set up shop in his old house. The department of state said nope
Nothing. Still owe taxes on income earned in the US.
Remember only 70 years ago tax was at 60% or higher
USA taxes on citizenship not location
The US is the only country where their citizens have to file a tax return even if they didn’t live in the country and earned no income in the country.
But also, billionaires likely have their wealth tied up in US assets. If Zuckerburg moved to Switzerland, all of his META stock is still held in the US and if he sold, he’d have to pay taxes on it.
50% of what?
Income?
Many billionaires have little to no income, as they don’t realize the capital income (don’t sell the stocks). MAny live on debt, with the stocks being the collateral.
If you live overseas, you still pay taxes as an American if your income is over…90.000?…I forget what it is now.
I mean, they do that now with their wealth. Not entirely, but through diversification. It’s better for them to keep all their stolen booty in different currencies and markets so that if the winds blow against their favor one day and a government either collapses (along with its currency), or they’re declared enemies of the state (see FTX assets seized by the Chinese government), their ridiculously vast wealth is insulated through segregation. The Cayman Islands and Hong Kong in particular are popular for this.
Remember that taxes are based on income in the US, so if they strategically position their portfolios with companies moved to Ireland, then they aren’t paying US taxes despite living in the US.
The only way they will ever face justice is a multi-national coalition approach to brutally deal with the multinational oligarch problem (and their entire bloodlines). Which they very much don’t want to happen, which is why they have a keen interest in supporting (and making money on) any and all wars.
The U.S. has an exit tax even if you renounce citizenship
two things:
1) as others have mentioned, US citizens need to pay income taxes regardless of where they live in the world (subject to tax agreements)
2) quality of life. They can move to countries with astronomically lower tax rates right now, but they don’t because they want to live in the USA to enjoy the quality of life being a billionaire gives them. Regardless of how low the tax in Somalia (10% flat rate), they can’t enjoy life there as much as they can in the USA paying far more in tax.
So the reason why they won’t move is the same reason they don’t move right now… the amount they pay in tax is irrelevant to them enjoying their life, but moving to another country will impact it.