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For a number of years now, web sites like Action America have been warning of the increasing expatriation of the wealthy, caused by the increasingly wealth punitive laws and an increasingly aggressive IRS. But, even Action America only takes about 60,000 to 100,000 hits each month, so without the attention of the major media, it has gone largely unnoticed. However, this article is just one of several similar articles that have begun to show up in respected large distribution publications.

This expatriation has been quietly growing for years. But, now that the major media has taken notice, all that will change. Look at how wealthy investors react to the news of a Piper airplane crashing into a building in Italy or a boiler explosion in New York.

Now that the cat is out of the bag, you can expect other major media sources to jump on the band wagon, for fear of missing out on the story, resulting in many more articles about expatriation. This will certainly cause a sharp increase in expatriation among already nervous wealthy investors and corporations.

The problem is that, as wealthy individuals and corporations leave, the tax base is disproportionately eroded. The obvious result is an increase in the level of taxation on those left behind, just for the government to stay even. Worse yet, it means that the IRS will have to become even more abusive than they already are, in order to get even more financial blood out of a worsening, economically anemic public body.

Rather than attacking those who pay the majority of the bills (top 1% pays more than 1/3 of taxes) with laws meant to discourage them from leaving, they should be passing laws that encourage them to stay (or even to return), by insuring them protection from confiscation, a territorial tax system (such as the NRST) and lower tax rates. By choosing to use the negative approach of disincentives rather than the positive approach of incentives, Congress and the Whitehouse are actually contributing to the problem and forcing many wealthy individuals and corporations to choose expatriation as the only legal method left to protect what they have rightfully earned from potential government confiscation.

These and other such oppressive laws just confirm that the native capital flight that Action America has alerted readers to for years, is real. This demonstrates conclusively that our lawmakers are seriously worried about losing the power that they have over these wealthy corporations and individuals. It cannot be denied.

Wealthy individuals and corporations are leaving.

Until the Income Tax and IRS are abolished, this will continue. Well, to be more precise, this capital flight will continue as long as the Income Tax and IRS exist or the government moves to confiscate all wealth. The only plan that is currently being offered in Congress that will not only stop, but reverse this dangerous trend, is the National Retail Sales Tax (NRST).

See the "Tax and Economy" section of Action America for more info on IRS induced capital flight.

Also see the related article on FR, "Five firms answer call of islands."

Tax Reform Bump.

Good post.

Corporate taxes must be abolished because companies are usually able to shift the cost of the tax burden to their customers (higher prices) or labor force (lower wages).

So we are to lower taxes while this president is spending as much in comparison as LBJ. Yes, cut taxes but vote in persons that stop spending. In order to do that you must vote outside this "Two-Party Cartel".

"...the bill titled Reversing the Expatriation of Profits Offshore Act, or REPO,..."

How telling!
The government wants to "repo" the fleeing corporate profits, as in "repossess"! as in "seize that which rightfully belongs to you"!

Now we know EXACTLY what Grassley and Baucus think of corporate earnings - they ALL belong to the government.

And everytime I drive by the empty factories Stanley Tools abandoned in New Britian CT., I think about the Taxes???
They moved all the jobs to China and Incorporated in Bermuda all within 2 years. And you say it isn't greed???
If they wanted to just avoid taxes, they could have left a few jobs here in Ct. Their point was very clear: Screw America, its Workers and it's Tax laws.
Bottom line...Boycott Stanley Tools