Friday, April 22, 2016
#087: Tax Havens
Nearly three years ago, France decided to raise taxes on the wealthy as much as 90 percent. And of course, the rich complied with this tax increase by remaining in the country and willingly allowing their wealth to be taxed.
Just kidding. After the tax increase was announced, the wealthy started selling their mansions with plans to move out of the country. So many rich people were threatening to leave the country that France decided not to move forward with the tax increase.
Funny thing: people with lots of money tend to want to keep their money and will do so by moving to places where tax rates are low. This isn't just a trend of the rich. In recent years, plenty of lower and middle class individuals have been making the exodus from high tax blue states to low tax red states.
And then there's the fact that America has the highest corporate tax rate in the world, and yet politicians still scratch their heads and wonder why so many corporations are outsourcing jobs overseas. Clearly, it's because corporate taxes aren't high enough. We need to raise them. That will certainly stop those greedy corporations from outsourcing! /s