this post was submitted on 11 Jul 2024
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the funds sholdn't come from the working class, but instead the rich. increase taxes on the highest earners to fund welfare.
I think for this to work you need an agreement between wealthy countries to all apply this kind of tax. This would be an attempt to stop all the accounts from just living offshore.
Not sure if the EU can apply this as a bloc style rule. I doubt the US powers that be would want to, and then other large powers I'd argue have even more questionable ruling classes anyway, but I'm open to being wrong on that last statement.
I could be wrong on my first statement too. I haven't thought it out that much.
no, you're right. The wealthy would do everything they can in order to avoid those taxes, up to and including moving to a new country with lax tax laws.
That is the fun stuff. They don't. That is the lie.
If the USA and EU decides that the rich has the pay taxes then where do the rich go? They go to XYZ country, you might think but they don't. Their business is in the US and the EU and their wealth is. They can slowly move their business and wealth... But they can't move their market, which is where? USA and EU.
Also e.g. The old money in Germany will never leave Germany. Due to privacy laws and the safety that they live in, they remember the RAF and they are thankful for the privacy and safety.
It is a lie that they tell you. They don't leave.
Edit: in case, someone is wondering what I think is a motivator for them. Comfort.
They don't because they don't have to - they are not very highly taxed (in Germany business profit is taxed at 30%, private capital gains at 26% and salaries by up to 45% - and the rich don't have salaries).
Once you start a policy that is exclusively paid for by the actual rich, they'll either prevent it or find a way to net profit via their contacts in legislation, or they will just change their main residence to one of their vacation homes. Plenty of German rich folks have done so already.
Or tax businesses based on where they make their profit, if they refuse to show their numbers and comply close them.