Dodging Taxes

A recent story in Yahoo News caught my eye. Apparently there is movement afoot among the very wealthy to renounce their citizenship and skip the country to protect their filthy lucre. The story reads, in part:

According to a 2012 study published by the Research Institute of Industrial Economics that examined the mobility of billionaires over the past two decades, “70% [of those billionaires] have migrated from a higher to a lower capital gains tax country … One-third of the billionaires that moved went to small countries defined as ‘tax havens,’” including Switzerland, Bahamas and Singapore.

Presumably these billionaires are all Americans. In any event, we can infer from this that the exodus has been going on for some time. But apparently with the new tax increases  that have raised the taxes among the very wealthy a huge 4.6% the number of people from this country who are seeking asylum elsewhere in places where their money is safe from the IRS has increased. In the state of California where Proposition 30 has added to the tax burden of the very wealthy — and where millionaires like Phil Mickelson can be heard crying poor — the number of people thinking about leaving the country is even larger.

There are several interesting ramifications of this exodus. To begin with, one must question these people’s patriotism, which involves both rights and responsibilities. They obviously see taxes simply as a burden — as though the state and the Federal government are stealing their money; they recognize no obligation whatever to the state and country that have provided them with the opportunity to accumulate this huge wealth. Nor do they see themselves as part of a larger inter-dependent community. Rather, they see themselves, on the whole, as self-made men and women who didn’t need anyone’s help along the way. We noted that when Romney was running for President. It is apparently an affliction which the vast majority of wealthy in this country are stricken with, a kind of moral blindness. We might call it the “self-sufficient syndrome” (S.S.S.) They are blind to their obligations to others.

But this tax money can do so much good in the states and the country at large to improve the infrastructure, assist the poor to get back on their feet, improve the schools which are near the bottom of the world’s educational heap, and improve the lot of those who are in need of proper health care. None of these things seems to factor in with those whose lives are focused entirely on the effort to accumulate and protect their (often) ill-gotten gains.

The hope of the founders was that the Republic would encourage public virtue, the desire of all people to place the common good above self-interest. Their hope was that this form of government, of all the kinds the world has ever known, would involve its citizens in the effort to build a community of kindred spirits who would pull together to make the country strong and vibrant. Instead, many U.S. citizens see nothing but the opportunity to gain wealth and continue to do so until they die  (“the one with the most toys when he dies wins”) — at which point they will hand as much of it as possible over to their children to give them the same sort of head-start they almost certainly had themselves. So those lofty ideals of apparently naive thinkers in the eighteenth century who founded this nation have been replaced by the reality of greed and self-interest (the very things they feared). And those of us who will be left behind after the exodus is over will have to clean up their mess.

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4 thoughts on “Dodging Taxes

  1. your final sentence made me sad. you are right; it’s the humble ones who linger behind and pick up the pieces and find ways to rise from the ashes. roll that thought to a piece of fiction; the humble recover and rise again, and their world is much better without SSS folks in the picture!

  2. We could call it the “I got mine, you get yours syndrome.” This happened in Great Britain when the largest marginal tax rate was 95% I believe. Remember, George Harrison’s song Mr. Taxman (19 for you and one for me). Also, the US had a 70% upper marginal tax rate at one time. So, you could understand that kind of emigration at those levels. But, as our friend Mrs. N likes to point out the rich never had it so good here. Even with the personal economic wisdom, people who do this lose sight of a greater good to help those in need and to help your country. It does not seem very patriotic. Good post, BTG

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