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by jimnotgym 980 days ago
Would it make any difference? I'm a UK citizen. If I earned profits from a VC fund in San Francisco what are the chances of me paying only UK tax on that? You can also tax the fund directly and the corporations they invested in. You can tax the transfers of wealth between those entities. Of course you can tax these people if you want. Sure some of them will run to Belize, but the US control the domicile rules, tax them as you wish. Are they going to stay there forever? Tax income earned on US PE funds at source. Do whatever you like.

It is frankley pathetic to suggest you can't tax rich people or they will go abroad.
2 comments
yanderekko 980 days ago
>If I earned profits from a VC fund in San Francisco what are the chances of me paying only UK tax on that? You can also tax the fund directly and the corporations they invested in. You can tax the transfers of wealth between those entities. Of course you can tax these people if you want. Sure some of them will run to Belize, but the US control the domicile rules, tax them as you wish. Are they going to stay there forever? Tax income earned on US PE funds at source.

Obviously you can tax income and put the mandate of enforcement on companies that are paying individuals. You cannot delegate the taxation of pre-existing wealth to companies though and deputize every firm as an IRS agent.

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jimnotgym 980 days ago
Further to that, I don't know how it is in the US, but in the UK VC firms are regulated. You can allow foreign investors fine...but this guy is a principal. You can apply whatever fit and proper persons test you like to the principals, such as no outstanding tax issues, and domicile if you want. You just need the political will.
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