alphawolf29 wrote:For all you people saying "tax the rich" Are you retarded? If you start taxing the rich, they will leave the country, Then who've you got to tax? no one.
Over-taxing the rich is the worst idea possible
Well, that depends. People aren't the same as corporations--a corporation can put its offices in Antigua for low tax rates and still operate the majority of its business out of the United States; a person can't do that so easily, since, if they spend most of their time in a foreign country, then they will lose their citizenship and will have trouble working in the U.S.; if they spend the majority of their time in the United States, then the tax code will apply to them because their "country of residence" will still essentially be in the United States. Many of the proposals presented here don't, anyway, target the people who are so rich that they can afford to just pick up everything and leave.
More to the point, if your marginal tax rates are still below countries of a comparable standard of living, there's no problem. If the tax rate in the United States is (making these numbers up) 35% and it's 40% in Canada, 55% in France, 50% in the UK, etc. then there is little impetus for them to move if you bump the rate in the U.S. up to 39%. You could probably even go higher, allowing that some people will leave, but that people will probably also factor things like climate, language, etc. into their calculations for such matters. Yes, they could just as well go live in some country with a significantly lower tax rate, but they'll probably be doing so at a significant sacrifice to quality of life. For instance, the UAE already has among the lowest tax rates in the world (effectively zero), but that doesn't mean that there's a huge rush of rich Americans planning on leaving the country to take advantage.
These tax increases are hardly at the level that will cause a mass exodus of the rich from the United States. As others have mentioned, they're effectively just undoing some tax reductions that had occurred in the last few decades.