[nielsbot]

I say "see ya!" and wave goodbye.

You think people living in NYC, for example, the financial (and one of the major cultural capitals) of the entire world (not to mention all the other benefits of US residency) are going to bother with packing up their lives and moving overseas because the taxes are too high? Not to mention these people will still have obscene wealth in all likelihood.

Some might, but I don't think we should wring our hands over it.

Rather than worrying about "capital flight" let's instead imaging all the good that could come of us having a more more equal wealth and income distribution.

[hollerith]

Maybe the reason it is the financial capital of the entire world is that historically the tax regime let people keep most of the money they earned.

[TimorousBestie]

Income tax rates and corporate tax rates were higher during the post-war era than they are now.

[bpt3]

Effective tax rates weren't much different, which is what matters.

[TimorousBestie]

The effective income tax rate was still on the whole higher for the wealthy in the 20th century. Depending on where you put the percentile cutoff, I’m seeing peak-to-troughs between 5-20%.

[hollerith]

And the reason most governments reduced the rate was because economists argued that the higher rate reduces economic activity so much that total tax revenue (collected by the government) is actually higher at the reduced rate. Look up the "Laffer curve".

[1718627440]

But taxes don't exist as an income flow, but to give incentives. Taxes exist to reduce economic activity for goods where you want that.

[p_j_w]

Have you any evidence for this proposition?

[bpt3]

Yes, they've been moving to Florida in droves for the last decade plus.

Eventually you'll run out of other people's money to spend, and will be forced to face the reality of your own self-sufficiency.

[fireflash38]

Ah yes we're held hostage by the rich. Do what we say, or we take our ball and go home.

[bpt3]

If you're going to balance your budget on their backs, yes: https://taxfoundation.org/blog/one-rich-guy-moves-new-jersey...

Europe figured this out long ago and has a very broad tax base (aka higher taxes on the middle class) to fund their social welfare programs but somehow you never see that proposed as a solution by the middle class in the US...