[Andrew Cuomo] "Tax the rich! tax the rich! tax the rich! WE DID!! now . . . the rich leave."

Hey stupid people, whenver it is a federal tax, and they are citizens, they can leave but they still pay taxes.

DD

 

Who would have ever thought that people will move to avoid taxes. Those evil rich people just do not want to pay their fair share. Don't they know It is their duty to fund the socialistic agenda of the left?

 

You are technically correct that, unlike federal taxes, one can avoid high state taxes by moving to a lower tax state.

To avoid federal taxes by fleeing you have to surrender approximately 50 percent of your net worth to give up your citizenship.

The reason folks are responding to you post in the fashion they are is that the wealthy will figure out structures to avoid or minimize the add'l taxes.

 

This is why the US tax revenue hasn't really changed regardless of the rates, basically it takes as long as it takes for people to restructure their taxes for any revenue related to tax rate changes to evaporate, nicknamed Hauser's law.

But this isn't unique to the USA, it's just that due to the pareto distribution of wealth, the US' combined wealth and population, leave it with the highest vulnerability.

Of course, other places have learned to accept this, Europe for example, banks mostly on its VAT, due to the difficulty of minimising said tax, it works too, but their tax rates aren't progressive at all, they're just high, for everyone.

I don't really have an issue with taxing the rich per se, but it needs to be a sensible approach where the goal is to maximise the revenue. The idea that tax rates always transfer to revenues is one of those dumb ideas that needs to die, unfortunately dumb isn't going away any time soon.

The people who they want to pay all those taxes, are the people with the best ability to avoid paying said taxes, it's a war they've been losing for decades and aren't ever going to win (let's take the president for example, if his real estate empire isn't within a family trust that already legally belongs to his children to avoid estate taxes, he's in his 70's after all, that give him executor power instead to control it, then i'll eat my old '94 rockets cap)

And in many cases, the words of these higher taxes aren't about the money, it's to be a form of punitive punishment for the evils of success.

 

Obviously they won't just move away from high taxes as California and new York would have no rich people, which certainly isn't the case.

 

If tax the rich wasn't effective at taxing the rich this thread wouldn't exist.

Instead the opposite is true, the very wealthy will literally kill people to avoid marginal tax increases and will do the same to push through as many tax cuts for themselves as humanly possible.

This is pretty good evidence that taxing the rich taxes the rich.

 

?????? might want to provide some evidence, just a thought....

 

Tell me more. If a millionaire went to cash and transferred himself and his million to a tax haven, how does the federal government get their cut? In the year of the transfer, i can see having to pay LTCG for whatever gets sold, but that aint 50%.

 

I was off on the 50 percent. But he government takes a piece of everything you own whether you sell it or not. If you have over 2mm in net worth, you get a credit of approx 600k, but then the gov't marks to market all of your assets, pretends you have in fact sold them, and taxes yoas if you had. So, it appears that it is in essence a capital gains tax (you are right), but that means it might be a more attractive proposition to the uber wealthy seeking to flee high taxation.

If you are asking about enforcement (like if someone tried to hide their money offshore), I assume the government's usual enforcement would apply. If you are arguing that it would be ineffective in many cases, you are making the case that more wealth could successfull flee.

 

I assume that rich people are able to hide money in tax havens. I do not understand the mechanics of how that is done.

I do know that if you move your money offshore but keep your US residency the IRS will set that as a red flag.

 

From Politico...

76 percent of registered voters
Seventy-six percent of registered voters support the wealthiest Americans paying more taxes, according to a new Politico/Morning Consult poll. This largely jives with a Fox News poll that showed 70 percent in favor of increased taxes on those earning more than $10 million. The polls come as 2020 contenders put forward and debate new levies on the rich. [Politico]

 

Such a deft move... let’s cut taxes across the board when we having a large, aging demographic....

I imagine many states will be having deficits because of this. Hopefully pensioners and seniors are okay getting less.

 

It’s about the net benefit. Wealthy get lowered federal taxes and higher state/local taxes.

Lastly, when you have a personal and tax state based on income... guess where most of the revenue comes from????

... from people with lots of income.

 

When average Americans start losing their entitlements due to lowered taxes for the wealthy...

It’s kinda why the latest tax reform isn’t that popular...

 

u can't possibly be this dense, taking glee in the fact that SALT deduction has been eliminated.

Mortgage interest and SALT deduction have been the principal tax deductions available to the middle class

the tax law change by Trump eliminated SALT deduction and kept Alternative Minimum Tax (AMT) intact,
a tax sheltering mechanism available to only the rich.
​

in effect, Trump took away a tax deduction from the middle class in order to pay for AMT tax shelters for the rich

it's too bad that ur too dense to understand that

​

 

Most likely, the problem here (in this discussion) is definitions of "middle class" etc.

The limiting or elimination of the state/local tax deduction, and mortgage interest deduction, is hitting wealthy people hard (and I don't consider myself in that class, just FYI).

Last year at tax time/end of year, I was in the local tax office and a clearly wealthy lady started complaining to me about Trump's new tax law. Now, this surprised me. But, I found out that she was complaining about the limits on the mortgage interest deduction (probably for her ~$500k or more house).

In my case, the mortgage interest deduction and the local tax deduction were my big 1-2 punches that got me a refund each year.

Now, me, more in the middle class -- I met with my CPA a month ago, and she told me that although I could still use my state and local deduction, and mortgage interest deduction (ie, itemizing), that it would not make sense for me to do so, since the standard deduction, under the new law, has risen so high.

So, as far as I can tell, the tax cut is benefitting the middle class (and not just with lower taxes but also with a better economy/raises at work), and in many cases it is hurting the wealthy.

So, unless I am misunderstanding you, I don't think your analysis is correct. Of course NY is not Texas, so there are likely differences there too.