The Economy Bomb - Ticking Down Faster

Action America ^ | May 10, 2004 | John Gaver

[Action-America]

Love'em or hate'em, we need the wealthy, because that top-earning 5% pays more than half of the tax actually collected in the US. Yet, between the abusive IRS, increasingly harsh legislation aimed at punishing the wealthy for nothing more than being wealthy, more frequent government confiscations of private property, frivolous litigation and exorbitant damage awards, we are giving those people no choice, but to take their assets and seek refuge in other countries. This is disproportionately and severely reducing our investment and tax base. At that income and tax level, it doesn't take many leaving, to have a sizable impact on tax revenue and since the lion's share of the 363,000 and growing number, who expatriate every year, are wealthy, that impact is neither far off nor will it be trivial.

Yet, instead of passing laws that would have the effect of rewarding the wealthy for staying, both parties in Congress seem intent on passing more of the same kind of punitive laws that are increasingly forcing our largest taxpayers to leave. What's wrong with this picture?

We need to be encouraging the wealthy to come here, to spend their money here and to invest here, instead of making it difficult for them to stay here.

It's time to abolish the IRS and replace it with a National Retail Sales Tax. Furthermore, we need to seriously roll-back the most wealth punitive portions of the (ANTI)Patriot Act, since those provisions have absolutely nothing to do with fighting terrorism. National legislation needs to be enacted requiring that confiscation of private property may only occur under a court order and must be returned to the owner in the same condition (including accrued interest on seized financial assets and fair recovery of depreciation on physical assets), if official charges against the owner are not filed within 10 days or in the case of ultimate acquittal. Finally, a "loser pays" system needs to be enacted in our civil courts, with liability awards limited to actual and reasonably expected future damages.

With those changes, massive amounts of wealth would flow back into the US, in short order, thus reducing the tax load on everyone. The real problem lies in getting our power-hungry elected officials to let go of that much power over their constituents.

 

[Action-America]

Tax Reform BUMP!

 

[Phantom Lord]

self bump

[proxy_user]

Well, if you're one of the big boys, you should know how to play with the big boys. You should have tame senators on your side, and fierce attack lawyers on your staff. You should be able to use your control of the media to misdirect the wrath of the peasants at your enemies.

If you can't do that, the other guys will pick your bones.

[ancient_geezer]

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

[SierraWasp]

Good article, but I disagree with your tagline. Nixon was the worst Republican President. He never got taxes cut and had a horrible domestic agenda/policy. Even tried wage and price controls!!!

I'm not a knee-jerk Dubya fan, but you simply have missed the mark with that tagline.

[Ahban]

bump

[ancient_geezer]

You should have tame senators on your side, and fierce attack lawyers on your staff.

Why bother, when one can pack bags and go where the jobs your capital can provide are desired and appreciated?

[SierraWasp]

Oh! And Nixon signed the biggest economy wrecker of all... The Endangered Species Act!!!

[Gorjus]

This guy would make a good liberal! Exaggerate the problem! Declare a crisis! Then ride in on a white horse to save the day.

His numbers are based on the basic assumption that 100% of the highest-income taxpayers leave. There is absolutely no basis for making that assumption. The expatriates I know are predominantly upper-middle class (or less) retirees - small business owners, professionals like engineers and doctors, ex-military - who leave to where their very average retirement income puts them in the upper class where the migrate to not where they migrated from. More than that, as retirees their income is down significantly from their peak earning years. They may have a nice nest-egg to live off of, but they wouldn't be paying much in the way of taxes if they had remained. Like Willie Horton said about banks, the high-income taxpayers stay here because that's where the money is (or can be made).

I'd love to see a national retail sales tax replace the income tax. It makes no sense to me to have a national policy that actively penalizes the very behavior - providing a good or service that someone wants to pay for - that we should instead be encouraging. But this article is not even convincing, let alone compelling.

[proxy_user]

Because even with the way things are, you can make more money here.

Moreover, the money game is much more freeswinging in the US. This attracts those who are creative, and enjoy dirty fighting.

This article itself, and the threat to leave the US, is itself no more than another method of landing a blow.

[Know your rights]

The expatriates I know are predominantly upper-middle class (or less) retirees

How many people in the upper 1% do you know?

[xrp]

Question is, where are all the wealthy departing to? There has to be somewhere that is more friendly to high income earners.

[Penner]

The wealthiest Americans are leaving the USA for more wealth friendly climates at the highest rate ever.

And as they walk out the door, strip them of their American citizenship and bar them from entry into the US for the rest of their lives. If they try to sneak back in, lock them up in prison and throw away the key.

[Poohbah]

And as they walk out the door, strip them of their American citizenship and bar them from entry into the US for the rest of their lives. If they try to sneak back in, lock them up in prison and throw away the key.

And almost all of them will still say, "Okey-dokey," and never try to reenter...and they'll still take their money with them. What then?

I note that your first reaction is to not examine the problem from a perspective of "Why do the richest people seek to leave this country and take their money with them?" Instead, it's "How can we punish those evil rich people for taking their tax payments with them?"

[Know your rights]

And as they walk out the door, strip them of their American citizenship and bar them from entry into the US for the rest of their lives.

Are there any other rich people you'd like to keep out of this country?

[johniegrad]

And as they walk out the door, strip them of their American citizenship and bar them from entry into the US for the rest of their lives. If they try to sneak back in, lock them up in prison and throw away the key.

Are you sure you're posting at the right website?

[taxed2death]

Costa Rica, Ireland, Bahamas, New Zealand...are just a few.

[Penner]

And almost all of them will still say, "Okey-dokey," and never try to reenter...and they'll still take their money with them. What then?

I see. If the nouveau riche take their money and run, America will cease to exist.

I note that your first reaction is to not examine the problem from a perspective of "Why do the richest people seek to leave this country and take their money with them?" Instead, it's "How can we punish those evil rich people for taking their tax payments with them?"

Give me a break. This isn't about "punishing the evil rich". This is about preventing the creation of an aristocracy here, which the founding fathers were adamantly against.

[ancient_geezer]

This article itself, and the threat to leave the US, is itself no more than another method of landing a blow.

Ahmmm! it isn't just the threat, when it is actually happening. The issue is not whether it could happen, but rather how to reverse the trend.