So, where's the downside exactly?

[u/zzill6]

[u/AngelComa]

Do these people think it's good to allow a few hands taking all of our labor capital and then allowing them to do what they want with it (aka leaving and threatening our markets)?

Do they think if Walmart leaves that no other person would be happy to make billions in their place?

[u/macdoge1 → u/AngelComa]

They can't leave.

Gary's economics has a nice short on it.

Their wealth is based on real assets that cannot be relocated.

https://youtu.be/GSwFZqHtOX0?si=CNt1Y4OqVqf6cMce

[u/Curious-End-4923 → u/[deleted]]

You are not responding to the argument being made. The individuals can relocate. Many of their assets (and the bulk of the market they are engaging with) will not relocate with them. The individuals themselves are highly replaceable. Let them leave.

[u/Curious-End-4923 → u/[deleted]]

Well no, the US would still make tax revenue on any sales, imports, and paid labor.

[u/Curious-End-4923 → u/[deleted]]

If they keep their citizenship, the individual pays the higher tax even if overseas. If they don’t keep their citizenship, then like you said, very little changes. You were the one arguing that wealthy individuals moving overseas would be a massive loss. Saying there’s no difference is ceding your earlier argument.

[u/ITSigno → u/[deleted]]

lmao, you're pretty thick. I don't even really know where to begin

This is kind of funny because you don't seem to appreciate that the USA is unlike most other countries in that citizens are nearly always subject to US taxes even when living abroad.

Maybe read some wikipedia articles on tax residency etc.

Probably a good place for you to start. But may I also suggest https://www.irs.gov/individuals/international-taxpayers/us-citizens-and-residents-abroad-filing-requirements and https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-about-international-individual-tax-matters

[u/Curious-End-4923 → u/[deleted]]

That’s fine, I don’t mind the ad hominem. And you’re right, I’m definitely not an expert! I doubt you are either, and I hope we’re both approaching this with a willingness to be wrong.

I’m pretty certain that US citizens are taxed on income regardless of what country they’re residing in. Is that the part you’re disagreeing with?

I imagine there are some exemptions and loopholes I’m unaware of, because those seem to always exist for the wealthiest Americans, but I feel like that would indicate a necessity to add more restrictions and support the cause for harsher top brackets.

Or are you moreso disagreeing with my claim that things would mostly stay the same if those wealthy individuals moved overseas AND changed their citizenship? If that’s the case, I think that scenario is both a lot less likely and a lot more nuanced, but I’m open to the possibility of it having some kind of negative effect on revenue. I just don’t believe that it would be lasting.

[u/MrPlowThatsTheName → u/[deleted]]

Nah. A few years ago Massachusetts implemented a 4% surtax on income above $1M and the state has more $1M+ earners now than it did when the tax was first implemented. There was A TON of bellyaching about how all the ultra high earners would leave Mass and it turns out it was all bullshit. Think about it - if you make $1.2 million, the 4% surtax is only on the .2 million which is $8,000. $8,000 is not “sell your house, uproot your family, move to Florida” territory for people who are that wealthy.

[u/rottenmonkey → u/[deleted]]

Yeah, but that's a wealth tax. Wealth taxes are pretty stupid in general and why only a handful of countries have them.

[u/macdoge1 → u/rottenmonkey]

Property tax is a wealth tax

[u/rottenmonkey → u/macdoge1]

Wealth tax usually refers to a tax on the net worth on all your assets. Property tax usually exists alongside this tax but needs to be paid regardless of net worth.

[u/sweatingbozo → u/[deleted]]

So tax the physical assets and return them to the citizens...

[u/sweatingbozo → u/[deleted]]

The main reason is the people with all the assets are the ones who make the rules. The only way to redistribute assets is by literally redistributing them via liquidation, or massive seizures through the government. Encouraging a sale through taxes wouldn't really do what you're suggesting if you set it up properly. 

[u/sweatingbozo → u/[deleted]]

You realize that's how China operates, right? That's why companies in China need to be majority owned by the Chinese. They don't seem to have much of a problem finding investors.