Yes but if you're wealthy in France you're restricted comparably the size of Texas to move to. Unless you move to Switzerland or Monaco.
If you're wealthy in the US, you have tons of options around the country to live. Live in the South during the winter, anywhere north in the summer. I don't see any reason someone like Romney, Trump, Buffet, Cuban would renounce their citizenship unless their tax rate went up to 80-90% and even then, where else would you want to live when you're so used to the United States culturally. I think it's a bigger culture shock for a long time wealthy American entrepreneur to move everything to another country, than someone from France having to assimilate here.
That's fair. It's definitely easier to leave France than the US. I have to believe there is a tax rate where people would consider it, but it likely wouldn't occur at the levels you are suggesting.
Speaking anecdotally, I know someone personally whose father sold his company big in France and moved to New York and now runs an investment startup in NYC. I asked him about the French Tax thing on super rich and he told me from his father's perspective it was moreso the chance to live in New York and the USA rather than paying higher taxes in France. They wanted to live in America after visiting many times on business and now they are.
It was enough of a problem in France that Hollande was forced to repeal the tax. The super tax was his baby and the unintended consequences smothered it quickly.
I don't buy the idea that you lose investment, you only lose investment from the same players. It would encourage those trying to move up to take risks and invest instead of the same players at the top controlling everything. Also, I think it would also prevent more companies from merging or buying out other companies which further cuts more jobs. For every merger between two Fortune 500 companies, you're gonna lose thousands of jobs to replace while the surviving will take on 50% of a workload at roughly the same pay.
This is where you start to lose me. You are making a lot of broad assumptions.
1. What do you mean it would encourage people to move up? I don't understand how levying an additional tax on the wealthy would provide extra incentive to become wealthy than that what already exists.
2. Mergers and acquisitions are good for business because they (1) encourage startups which create more jobs and spur innovation and (2)create economies of scale that lower costs for consumers (at least if the Justice Department is doing their job correctly in approving healthy mergers and acquisitions)
I also don't buy that the economy will produce less, simply because in the next 15-20 years robots and automation will have replaced a lot more jobs which will lead us into another crisis. I give credit to Obama for at least trying to lead us in that direction. Nobody will admit that automation is going to further cut jobs, but it's a reality we're going to see soon. I mean in our lifetime we'll see automated Uber/Taxis. Forget automated manufacturing because that's almost here.
This isn't about simple job growth. This is about production of goods. We measure our wealth not in the number of hours we work at our job, but in the number of things that we can buy. If you raise taxes, it creates dead weight loss somewhere in the economy. Dead weight loss means less consumption which means a lower standard of living.
Now, taxes do serve a purpose in redistributing consumption. I'm not a crazy libertarian who thinks that the government is incapable of everything. The free market isn't going to do a good job taking care of the mentally ill, single mothers, children, etc., but I disagree with those that believe the government is the best resource forproviding for the middle class, which it seems like what most new initiatives are catered towards.
And for the record I wouldn't be in favor of anything over 50% tax even for the wealthy. 45% I'm reluctant to go to. 50% is where I draw the line. So no I wouldn't want to go back to post-depression 80-90% tax brackets.
The bigger problem than tax rate is the
effective tax rates that corporations ultimately pay (because, lets be real, when we say wealthy, we really mean Google, Apple, Wal Mart). I'm all in favor in creating additional barriers that keep companies from shifting profits to shell corporations in foreign countries. Cayman and Singapore shouldn't be collecting tax dollars that the US is rightfully entitled to just because Google has a really creative tax structure.