[magduf]

>3) The incentive for rich people to move to low tax destinations would be even greater than it already is.

I don't know why people keep harping on this, it simply isn't true at all. If it were, all the rich people would be living in Somalia right now, and they aren't, they're living in high-tax, high-CoL areas.

Very few rich people live in a way that allows them to live anywhere on the planet. Most "rich" people in the US are still working, and have to live someplace that allows them to continue to work. Some millionaire running a business in Silicon Valley can't just relocate to rural Alabama and expect to continue that.

[yostrovs]

You're conflating all sorts of rich people into a single type and then use that as the universal example. Warren Buffet lives in Nebraska and operates his conglomerate just fine from there. This he was doing before the internet age, something that now allows for even greater freedom of moving and operating from distant places.

[magduf]

Warren Buffet is one of the richest people in the world, on par with Bill Gates. He isn't representative of "rich people", which in America can be said to be 1% of the population (or several million people).

Nebraska isn't exactly third-world either.