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If you put a wealth tax on billionaires where you tax them on their total asset value, they’ll simply leave the country and take all of their millions/billions of dollars in taxes every year that they, their companies, and their employees pay, out of the country, leaving you in a much worse position than you’re already in since those are the people that already pay the majority of the countries income taxes etc.
Taxing wealth is a pathetic idea by people who can’t stand others being more successful than them.
You realise that they'll not leave because it would be A LOT more expensive than just paying their taxes right ? Moving assets is expensive, they will not sell all their property, they will not move their companies. Them moving away is just propaganda for fools like you.
And in any case, they already don't pay much, even if 1% of them move away, the tax income from the rest will make up for it.
Short term cost for long term profit. Look at all the companies that up and left Delaware after what their courts pulled with musks pay packet.
A wealth tax wouldn’t just be a one off thing either, so it might cost them 2x what they’d have to pay to leave, but that has paid itself off after 2 years.
According to Abigail Disney they already pay more to avoid taxes than the cost of the taxes themselves.
That's absolutely not surprising. Paying for attorneys, transfer pricing experts, etc. would definitely cost a lot more
How is it not surprising when it contradicts your argument?
Because it allows them to increase their wealth, but the assets and properties are not moving or changing hands (well, they kind of are by moving from holding A to holding B, but the holdings are still entirely within their hands). That's the expensive part which justifies paying experts.
Look I'm not married to this argument about fleeing capital, I don't think it's convincing that everyone will run off to Sweden or whatever. I just think that whatever the solution is will not be the most obvious one that can fit on a t-shirt sold on Gary's merch page. Imo Gary is a grifter and I don't appreciate how he denounces the "academics in their ivory tower" while saying he's got all the answers and it's so important that the prime minister calls him for help.
I don't really know the guy, he just pops up on my feed sometimes, so I have no idea if he's a self important jackass or not. But he raises a lot of important questions with answers we already know to be part of the solution. Raising taxes, destroying inheritance above a certain threshold, the looming threat of extreme Victorian-like inequalities, are all valid points.
Yea I heard the same arguments from people defending Andrew Tate; "he's got a good message about putting in the work to better yourself". My response was always that this is basic life stuff you can get from a thousand other people who aren't sex traffickers. Likewise Gary isn't the first person to talk about these issues, he isn't even the thousandth, he's just the guy who dressed it up with populist messaging and a victim narrative that the elites are trying to silence him.
He has all the hallmarks of being a grifter like the Weinstein brothers, Jordan Peterson, or Tate. Decoding the Gurus have done a few episodes on him being a weirdo that are fun and informative https://youtu.be/Ttrab7AMn-M
This objection has been brought up repeatedly but these are solvable problems.
Firstly, a lot of assets the wealthy own cannot be transferred out of country. Stock in companies, real estate, etc. The super rich are not rich because they have bank accounts with all of their money that can just disappear overnight, but because they own real things in the real world.
Secondly, economist Gabriel Zucman has proposed a solution to the “they will all take their money and leave.” The USA taxes all citizens on their income no matter where they are in the world. You could simply create a wealth tax that says “if you have wealth over 100 million USD and have lived in this country in the past 5 years, you have to pay the tax no matter where you live for the next X years. (X could be 5, 10, 15, whatever.) If it goes into effect starting in some future date of course people will try to shift assets and move but if you make it retroactive they can’t. Also the tax needs to apply to companies so they can’t have an LLC holding all of their assets tax free neither.
Finally, taxing wealth is not about being jealous or craven that others have more. It’s about survival of society in some form that isn’t “ten people own everything and the rest live in desperate poverty.”
For the ultra wealthy, their wealth can grow passively from compounding interest leaving them will little choice but to continue acquiring assets. If you were given a million dollars every week (that’s roughly 5% annual growth on a billion dollars) you would quickly find that you had lots of money sitting around despite paying off all of your debt, upgrading your house, having fun trips. Eventually you would start using that money to either buy stocks, real estate, etc. Then those things appreciate and your $1M per week begins to climb despite living a lavish lifestyle. It’s just a natural consequence at that point that you buy up and own real world assets at an increasing rate. This means there is less and less available to own for everyone in your community.
Essentially, at a certain point these individuals become financial black holes where their wealth is not only self sustaining but continues to grow and consume things. There is no stop unless society puts brakes on it to limit the growth beyond a certain point.
Not false, but something has to give. Billionaires are a drain on society, the conditions that allowed their creation tanked the middle class. They centralize capital in their hand at the downfall of everyone else. A wealth tax is a step forward. Ideally, combined with international agreements with the biggest fiscal havens to not let them run away.
I want to stress how the rise of billionaires is a global phenomenon. In an ideal world, all nations would slowly implement wealth taxes.
Billionaires are generally the wealth creators, not drains. How many people do bezos and musk employ? How much tax do they, their companies, and their employees contribute?
One will die:
Society or the billionaire.
This just isn’t true. Billionaires do very little that negatively affects society. Mostly they just pay all the tax and provide all the jobs.
Let them live in their floating city states or in their underground bunkers like erzatz Bond villains. Let's see how much wealth they create there.
They arnt paying anyway so it’s not a loss.
That’s just not true. Elon musk paid the single highest tax bill anyone has ever paid, for example.
The idea that billionaires would leave the economy that made them billions, the services and amenities that make being a billionaire worthwhille, and all their rich friends, all for a little tax break is pretty ridiculous. They already choose to live in California, New York, and London - expensive places with high taxes - rather than Cayman Islands or South Dakota.
They're definitely not uprooting the whole corporate campus, moving it away from the skilled workforce it needs, the housing that they need, and the good schools that they want.
Billionaires' personal wealth isn't generating any taxable income, anyway, so there's no income tax to lose if they do leave.
Avoiding a “wealth tax” isn’t just a “little tax break”.
Most wealth is on paper. Billionaires don’t just have a billion dollars of cash. I’m technically a multi-millionaire, but if I suddenly got hit with a 5% wealth tax I’d have too sell my house and be homeless to pay it. That’s not right or fair.
It’s basically a tax on unrealised gains, and I shouldn’t have to explain to you how that is terrible.
no one's talking about a 5% wealth tax, and few people are even talking about applying it to people with fortunes as paltry as $10,000,000.
Us middle-class shlubs are already paying 1-2% wealth tax on our biggest asset, and that asset doesn't even generate income. Why should billionaire stock portfolios be exempt?
Asset taxes, whether real estate or equity, encourage those assets to be put to productive use. If you can't figure out how to extract 1% economic value out of your $100,000,000 company to pay the wealth tax, then maybe you should sell that company to someone who can run it right.
Missed the point of the example.
Unrealised gains should never be counted or taxed because of their very nature. So you even understand the difference between realised and unrealised gains?
Just because someone has more money than you it doesn’t mean they should be unfairly charged with extra taxes. That’s pathetic.
What 1-2% wealth tax are us shlubs already paying? Why are billionaires exempt from this?
You fundamentally don’t understand the difference between the value of a company and the cash on hand of that company.
You're honestly lecturing me about unrealized gains and you don't even know about Property Tax?!? Primary residence is the closest most people get to an investment portfolio, and they get taxed on its full value, not just the equity fraction they own.
We don’t have property tax where I live.
They are a drain on society. If they leave, it's a net positive. If they start to pay their fair share, it's a net positive. Either way we win.
They literally pay the majority of all tax in a society lol. They usually create tens of thousands of jobs, and pay those wages.
There aren’t many billionaires that don’t own and run massive companies that contribute greatly to society.
The top richest times list and the top taxpayers list don't have any overlap. The majority of billionaires pay fuck all tax.
https://nchstats.com/who-pays-most-taxes-in-america/
You’re just wrong.
Let millionaires leave every country to form their own utopia. Let them try and live without anyone making the life go around. Just millionaires eventually eating each other.
And what do you think happens to the countries that just lost 50% of their tax revenue because the 1% left?
Hang on...
So most assets are shares and structures. Shares you can sell, but someone still holds them, structures can be sold, but someone still owns them.
If a billionaire left, a fortune in capital gains would be made, the wealth would remain to be taxed from other hands, and that precludes the destination not having a higher wealth tax.
Wealth taxes are never one off. They might get a big payday once, but then thousands of people have lost their jobs, 50% of the income tax is now gone from the books for the next year, along with all the other business related taxes.
Most places would love billionaires to move in, because then they get enormous amounts of extra tax revenue and, typically, jobs.
Come find me boot licker, I'll show ya jealousy. Its damn near dinner time, I can't wait I'm starvin.
PS bring army cause you can't do shit for yourself, ya gonna need it
At least you admit it’s jealousy.