Former Google CEO Eric Schmidt Has Applied To Become a Citizen of Cyprus (vox.com) 179
The former CEO of Google, Eric Schmidt, is finalizing a plan to become a citizen of the island of Cyprus, Recode has learned, becoming one of the highest-profile Americans to take advantage of one of the world's most controversial "passport-for-sale" programs. From the report: Schmidt, one of America's wealthiest people, and his family have won approval to become citizens of the Mediterranean nation, according to a previously unreported notice in a Cypriot publication in October. While it is not clear why exactly Schmidt has pursued this foreign citizenship, the new passport gives him the ability to travel to the European Union, along with a potentially favorable personal tax regime. The move is a window into how the world's billionaires can maximize their freedoms and finances by relying on the permissive laws of countries where they do not live.
The Cyprus program is one of about a half-dozen programs in the world where foreigners can effectively purchase citizenship rights, skirting residency requirements or lengthy lines by making a payment or an investment in the host country. They have become the latest way for billionaires around the world to go "borderless" and take advantage of foreign countries' laws, moving themselves offshore just like they might move their assets offshore, a phenomenon documented by the journalist Oliver Bullough in the recent book Moneyland. [...] The way the program works is that once a foreigner lays down between $2 million and $3 million worth of investment in Cyprus, typically through a real estate purchase, they can apply to what is technically called the "Citizenship by Investment" program. After the government reviews the applicant's background, conducts a security check, and hosts a visit from the foreigner, their application can be approved.
The Cyprus program is one of about a half-dozen programs in the world where foreigners can effectively purchase citizenship rights, skirting residency requirements or lengthy lines by making a payment or an investment in the host country. They have become the latest way for billionaires around the world to go "borderless" and take advantage of foreign countries' laws, moving themselves offshore just like they might move their assets offshore, a phenomenon documented by the journalist Oliver Bullough in the recent book Moneyland. [...] The way the program works is that once a foreigner lays down between $2 million and $3 million worth of investment in Cyprus, typically through a real estate purchase, they can apply to what is technically called the "Citizenship by Investment" program. After the government reviews the applicant's background, conducts a security check, and hosts a visit from the foreigner, their application can be approved.
Why do we accept such a citizenship (Score:5, Interesting)
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but we have forgotten
Imagine being that naive.
Re:Why do we accept such a citizenship (Score:5, Informative)
The EU started to move against it a while ago - https://www.bbc.com/news/world... [bbc.com]
Aside from abetting criminals, most countries actually have immigration policies that favour wealthy individuals.
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Re:Why do we accept such a citizenship (Score:5, Insightful)
If we want to retain high net-worth individuals who are incredibly productive, we should offer them competitive tax rates with other places who are willing to do the same.
Oh shut up and read before you start blabbering talking points. The US has one of the lowest tax rates of any first-world nation, especially for those at the highest income brackets.
To keep them here, as if a prisoner, is not only inhuman, but also likely a violation of human rights. Citizens are allowed to leave if they wish.
Do you realize how many obstacles prevent people from leaving the US - even in non-pandemic times? It's not just a matter of packing your bags and leaving. Many people who were born here couldn't leave here no matter how much they may want to, even if they have spotless criminal records.
Even just to move to Canada, you need several things that are beyond the reach of many:
And many of those fiscal expenses only go up in relation to distance if you're looking at other countries.
Re:Why do we accept such a citizenship (Score:5, Informative)
And don't forget, if you're an American citizen the IRS is one of the very few tax agencies in the world that will follow you no matter where you go.
Re:Why do we accept such a citizenship (Score:4, Interesting)
And don't forget, if you're an American citizen the IRS WAS one of the very few tax agencies in the world that will follow you no matter where you go.
Fixed that for you. The IRS doesn't have the staffing to follow people around any more. One priority of our soon-to-be-outgoing presidential administration was to gut the staffing of the IRS, which they accomplished with flying colors. Audit rates are down not because people are better at filing, but because the IRS simply doesn't have the ability to pursue as many questionable tax returns when they have this few accountants and lawyers (and accountant-lawyers) on staff.
Re:Why do we accept such a citizenship (Score:4, Informative)
One priority of our soon-to-be-outgoing presidential administration was to gut the staffing of the IRS, which they accomplished with flying colors.
According to the IRS itself, its decline in funding and staffing started in 2010 [irs.gov]. Kudos to Trump for going back in time seven years into the middle of Obama's first term, I guess?
And before you get to "blah blah, Republican Congress, blah blah" the democrats controlled both houses in 2010. The slide has not stopped, of course, and the Republicans certainly bear responsibility for their share, but the idea that this was a somehow one sided partisan operation really needs to die.
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So how tough is extradition from Cyprus, why there, it all looks really quite suspect. Google have been really naughty, fucking with democracy, for greater control and to fight off investigation. A google fiscal crash is quite likely and run with the cash springs to mind after dumping google stock as fast a possible. It used to be Singapore for the same stuff.
Re:Why do we accept such a citizenship (Score:5, Interesting)
Study says otherwise "The Highest-Paid CEOs Are The Worst Performers, New Study" https://www.forbes.com/sites/s... [forbes.com]
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They did remember immigration at least -- in the Treaty of Amsterdam. The treaty explicitly chose to keep immigration as a sovereign function of member states, although member states agree to abide by common asylum standards.
So Cyprus is free to naturalize as much billionaire riffraff as it wants.
Re:Why do we accept such a citizenship (Score:5, Funny)
I don't know, but maybe the EU's acceptance has something to do with BILLIONS OF EUROS flowing into the EU economy.
Really, what is the downside for the EU? Are you worried that Eric Schmidt is going to mug someone in an alley?
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Are you worried that Eric Schmidt is going to mug someone in an alley?
Peter Theil wanted citizenship in New Zealand, [nzherald.co.nz] so he dragged the taxpayers of that country into an alley and stole their wallet to pay for it. [nzherald.co.nz]
He certainly had help of course, but it smells like corruption to me.
Re:Why do we accept such a citizenship (Score:5, Interesting)
I don't know, but maybe the EU's acceptance has something to do with BILLIONS OF EUROS flowing into the EU economy.
Really, what is the downside for the EU? Are you worried that Eric Schmidt is going to mug someone in an alley?
Eric Schmidt isn't the problem. The Russian oligarchs who are doing the same, and buying up real-estate, influence, and bringing their dirty money into Europe, that is a problem. With Russian oligarchs there comes also a certain element of Russian influence and organized crime. They already wield huge influence in London and Britain in general.
https://www.voanews.com/europe... [voanews.com]
And PM Boris Johnson, who is surfing a wave of Russian money, invites them right into the house of lords
https://www.nytimes.com/2020/0... [nytimes.com]
https://www.themoscowtimes.com... [themoscowtimes.com]
While the US is concerned and vocal about the Russian-German North Stream 2 gas pipeline, Britain is the gateway for Russian influence and money into Europe and nobody is batting an eyelid.
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Making one man, who has been significant in UK media, a Lord is not indicative of 'surfing a wave of Russian money' or even 'inviting them right into the House of Lords'.
I do agree though that Russian oligarch investment in London has been extensive and has had unwanted knock-on effects (including but not limited to the housing market).
Re:Why do we accept such a citizenship (Score:5, Insightful)
It's not just one man, it's pretty regular that the conservatives in UK receive numerous donations from Russian sources.
https://www.businessinsider.co... [businessinsider.com]
But not just in the UK, also in other European countries.
It's all part of Putin's plan to hurt NATO and the west by dividing us - helping elect a divisive personality like Trump in the US, and aiding Brexit efforts in the UK to pull apart and weaken the EU. Conservatives in the US and Europe are useful idiots [wikipedia.org] in this process.
Re: Why do we accept such a citizenship (Score:5, Informative)
In the US, it is not possible to purchase citizenship.
Yes, it is possible. If you have $500k or more of assets to invest, you go to the front of the queue.
EB-5 Visa [uscis.gov]
Re: Why do we accept such a citizenship (Score:3, Informative)
Need real EU Citizenship (Score:2)
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You've lived outside the UK for 20 years and not bothered to become a citizen of where you do live?
Tough. Should've fucking committed.
many UK-based firms could easily have relocated their British workforce to the EU
If I wanted to live in the EU I'd fucking move there. UK-based firms wouldn't be UK-based if they relocated to the EU.
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Re:Why do we accept such a citizenship (Score:5, Insightful)
Switzerland has joined tbe EU? How long have I been asleep?
Re: Why do we accept such a citizenship (Score:5, Insightful)
Wow. A post about Switzerland as an EU state modded insightful. Talk about echo chambers.
Death and Taxes (Score:2)
Juat tax him more. The idea that foreign nationals can run the most profitable US businesses is itself something that's bull. Address this like work visas, force him to have a wage that is significant and then tax the hell out of it. Otherwise he is forced to step down as CEO. Likewise board member would need a similar fix.
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Otherwise he is forced to step down as CEO.
Eric Schmidt hasn't been the CEO since 2011.
Re:Death and Taxes (Score:4, Funny)
>Just tax him more.
Oh no! Rich people are fleeing high taxes!
Quick, tax them more - that'll fix it!
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He is going to Europe, where the taxes are higher.
Actually, Cyprus is one of tax havens in Europe
Forgets to mention the USA (Score:5, Informative)
If you have $500,000 you can buy residency in the U.S. which leads to citizenship.
https://www.theglobeandmail.co... [theglobeandmail.com]
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If you have $500,000 you can buy residency in the U.S. which leads to citizenship.
These days, that's a house, and not necessarily even in California.
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Our house was $120k, but most of that was the 5 acres of land.
I can't fathom why anybody would want to live in an expensive area anymore. It used to matter because you would be marooned in a cultural wasteland disconnected. Now, anywhere has the internet.
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Our house was $120k, but most of that was the 5 acres of land.
I can't fathom why anybody would want to live in an expensive area anymore
Children and good schools.
It used to matter because you would be marooned in a cultural wasteland disconnected. Now, anywhere has the internet.
Oh, and a job that requires you to be physically present. They do still exist. For a topical example, developing a COVID vaccine requires, y'know, being in a laboratory and working with physical things.
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Considering they do 2-3x the work that you do and don't complain on message boards about it, I'm tempted to look the other way.
Normally I would say good riddance, but ... (Score:2)
Eric Schmidt is on board the transition Biden team, and, per Financial Times [ft.com], “is being talked about to lead a new technology industry task force in the White House,”
You can check out, but you can never leave (Score:2)
The US Expatriation Tax means he keeps paying taxes. Forever. And if he does somehow renounce citizenship he is subject to severe additional taxes.
https://www.investopedia.com/terms/e/expatriation-tax.asp
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Forever.
No. It's a one time tax on US assets' value on the day of expatriation. Once those assets are gone (minus the tax) they are outside the US jurisdiction.
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let me rephrase: he can obtain dual citizenship. He still pays US taxes as a US citizen. IF the US government accepts the renunciation and does the one time tax and he gives up citizenship, then the taxation ends.
The point is that getting dual citizenship and then leaving doesn't mean you give up US tax liability. That's the forever part.
Uh, you can do the same in USA (Score:5, Informative)
What's the difference?
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The difference is those foreigners expect to move to and work in this country (or at least to make a profit from commercial enterprise that is mostly executed in this country).
Re:Uh, you can do the same in USA (Score:4, Informative)
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Thanx for that.
The USA does a variation on this too (Score:2)
Another screaming woke article (Score:5, Informative)
This is pretty common around the world - invest enough money and you get a fast-track residency which leads to citizenship. The US does it. The UK does it. Australia does it. New Zealand does it. And you don't have to be a billionaire to do it either.
The whole thing is yet another "billionaires are bad and evil article".
Slashdot really is utter shit these days.
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Not only are Golden Passports --- as they are often known, even officially --- common, there's little to stop anyone from becoming the citizen of another country in general, given desire and time. As with many things in life, having money makes that process easier.
It's all a question of means and motivation. Some people might feel that being able to bypass the line if you have money is unfair, but where is that sort of privilege not available? Even at the grocery store, if you can afford to have your gro
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This was a pretty silly article about a rich dude who wants to retire to the Mediterranean.
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The whole thing is yet another "billionaires are bad and evil article".
Slashdot really is utter shit these days.
Just Slashdot? No, this is how the entire mainstream media behaves since the dawn of time. Reporting something that happened many times in many places as if it were the first to generate outrage is how media make up stories to catch eyeballs.
The difference is, now it is easy to search the web to find out more, rather than having to take whatever appears in the newspapers at face value. Even so, enough people were fooled often enough to sustain the "media" industry.
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This is pretty common around the world - invest enough money and you get a fast-track residency which leads to citizenship.
The main difference with the Cyprus scheme is that you only need to be in the country for 6 months. Most other countries, such as the UK/NZ/Australia (I don't know about the USA) require you to be resident for between 3-5 years along with the investment.
I think this is a key point. If you have to move your whole life (residence, family, tax base) to the country for upwards of 3 years, then sure, become a citizen. If you can fly in for an extended summer break, and leave with a passport, I think that is very
meh whatever (Score:2)
This is all about tax avoidance. The only reason someone does this is wealth preservation. He made his fortune, and he's so laser-focused on hoarding it that he's willing to dump his citizenship in order to squeeze out an extra 10% from avoided taxes. It's basically an admission that his produc
Relatively popular here in Hong Kong (Score:5, Informative)
Since the controversial security law was passed, many well-off locals have been looking at ways to have a backup passport in case things go south locally. I met locals who bought their way into an Cyprus passport ti have an EU passport if needed.
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Many of them can come to the UK. We don't have space for them and the weather's shitty but we'll take them anyway.
Upset the Chinese Government when we said that, but hey, they shouldn't have passed the fucked up 'security' law.
Bah (Score:2)
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Sounds like robbing the U.S. to me.
Theoretically, what would happen if all the wealthiest people in the U.S. followed suit, I wonder?
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Put your billions ($16 billion, according to a quick web search, in the case of this Eric Schmidt) into some offshore bank, shielding it from U.S. taxation, then abandon your U.S. citizenship, fleeing to Cyprus.
Why would that $16B be subject to taxation? And why is it "fleeing"? He's not under pursuit. Eric Schmidt is a total sleezebag, but I don't see what you're getting at in this case. Do you want him to be unable to renounce his citizenship? Do you want to seize some of that money?
Re:Not merely a passport (Score:5, Insightful)
With Biden incoming, and a possible Democrat-dominated Congress in 2022, The Rich might get taken to the cleaners -- as if that won't be fair. So maybe this Eric, and others, are implementing their Exit Strategy while they can still protect their wealth.
Re:Not merely a passport (Score:4, Interesting)
No.. most are doing exactly what I'm doing..
Preparing an exit strategy.. Biden/Harris will slow down some of the problems going on.. but it won't stop them because about 40-45% of the population WANTS those problems. And you can't educate everyone... (any attempt to do will be met with scorn at best and anger at worst).. So you hedge your bets to insure that WHEN (not IF) things go really south, you are ahead of the curve. (the smart rat doesn't wait for the water to hit their feet.. they look at the direction and decide, its time to prepare to jump ship)
Most wealthy people don't really mind paying what will really boil down to an extra 1-3% in taxes to keep good will and public support going for them. And again, most do see the value in what that 1-3% nets to society as well as to them. (the ROI is high enough that its worth it)..
So its not the money that's the factor, its.. is the society that is here worth staying in.. And THAT is why they leave.
Look at the facts, US Immigration rates have been on the decline for a long time (ie: people coming in has been slowly decreasing over the past 15 years) and US emigration rates (people leaving the US) has been increasing especially since 2016. (10% of the population has left (which is rare) and 30% desire to leave (up from an average of 11%).. So the country is hollowing itself out.. and what's left are a lot of undesirable people that no one wants to be around.. (oh we will cheerfully take you money in businesses.. but live IN the US?.. No..)
Re: Not merely a passport (Score:2)
Cali and various other dems have multiple times seriously advanced a wealth tax. It's never gotten anywhere but you bet your ass they're serious about it.
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Re: Not merely a passport (Score:2)
Just like the last two times, right? And remember how they keep taking your guns?
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You don't know that, plus that money has earning power. Billionaires don't keep their wealth in after-tax cash.
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Re:Not merely a passport (Score:5, Funny)
1. The "rich" are already being taken to the cleaners
I don't think the parent post was referring to personal chauffeurs.
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This book Moneyland just sounds like a rehash of the ideas of flag theory and perpetual travel. The difference being capitalism sunk it's teeth in yet another thing that ideologically could be pure -- such as the benefits of being a world citizen and that countries like the US should have no justification for income tax on money earned in foreign countries. Tax law itself needs to be revisited in a number of ways to better deal with the the nature of a global economy. However, I am not holding my breath. Th
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tf are you talking about, social debt? A billionaire relocating to the EU will bring or create a minimum of hundreds of jobs. This is a huge win for any country or trading bloc accepting him.
The social debt is from taking in African refugees who will never have skills useful in a modern economy.
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Also GET RID OF RACIST LAW ENFORCEMENT.
What racist law enforcement? Cops kill far more whites than blacks. Fact is, they kill very FEW latinos, asians, but loads of blacks and shitloads of whites.
By the same token, little to nothing is done about cops killing whites and BLM does not give a shit about other racists, only blacks.
OTOH, there IS a lot more racism in Justice, but not in enforcement.
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"Fact is, they kill very FEW latinos, asians, but loads of blacks and shitloads of whites."
That sounds literally racist. You do know what "racist" means, right?
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And just because somebody claims it, does not make it so, esp. with evidence to the contrary (as I said, they shoot more white ppl than blacks).
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Re: Not merely a passport (Score:3)
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Commonly called "I have no evidence, and nothing that could be axiomatic, so I'll just shout it until people believe it".
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Theoretically, what would happen if all the wealthiest people in the U.S. followed suit, I wonder?
I'd be game to watch them try it out. It's not like they're actually paying much in taxes; and they're unlikely to take their businesses with them.
Re:Not merely a passport (Score:5, Informative)
In theory, when you lose your US citizenship (or green card), you are required to pay taxes on any unrealized gains ("exit tax").
https://1040abroad.com/faq/ren... [1040abroad.com]
According to this page, Schmidt may have already relinquished his US citizenship, although the document mentions intent, which he may not have.
So, if planning this approach, move to a country with no extradition agreement with the USA.
Re: Not merely a passport (Score:4, Informative)
I came here to say this. Getting a foreign citizenship offers little to no tax benefit for an American due to citizenship-based taxation. And the exit penalties make getting rid of that US citizenship very painful.
So people can stop the witch-hunting already.
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Who is John Galt?
A fictional character in a book written by a hypocritical sociopath.
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He started his own country.
Its called Somalia.
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Has he? How do you know? Maybe he's only paid 750/year for the last decade.
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It's also a major money laundering hub.
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> It's also a major money laundering hub.
It's not as reliable as it used to be. Slovenian intelligence tipped the FBI off to the Hunter Biden Cypriate money laundering about a year ago.
I am curious what their extradition treaties are like. Schmidt has some serious DragonFly problems coming his way (unless a Biden administration buries them).
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Can you cite evidence of money laundering? Cyprus is a favorite place for individuals and companies from former Soviet areas to stash equity within the safe confines of the EU, but not all that activity is necessarily money laundering.
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Cyprus is a favorite place for individuals and companies from former Soviet areas to stash equity within the safe confines of the EU, but not all that activity is necessarily money laundering.
I mean sure, the rich former Soviets state people stashing money in the EU might be completely 100% legit and above board. Definitely a theoretical possibility.
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All of the wealthy ppl will simply leave the nation.
Yet we still have wealthy people.
So there is obviously something wrong with your theory.
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Yet we still have wealthy people.
And those poor sods are stuck here. Because their wealth is tied up in productive enterprises that produce things and pay peoples' wages. Pray that they don't decide that it's not worthwhile any longer, convert their wealth into liquid assets and move it off shore.
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It is an interesting point.
So with Covid-19 and people working from home, some people have thought, "Gee, why do I have to live in such an expensive place if I don't have to go into the office? Maybe I should move someplace with a cheaper cost of living--especially if I can keep my high salary..."
Why would it be different for CEOs? Granted, they have a few more options--I could move to Missouri where it's cheaper to live, they could move to Cyprus. You're the CEO--you can probably find a happy medium for
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What do you think "convert their wealth into liquid assets" entails?
I've got a factory in Booger Hole, North Carolina. I want to convert to liquid assets and bugger off to a Mediterranean paradise. What do I do? I put up a for sale sign and sell my "productive assets" to someone who wants to own them.
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Oh they won't.
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Interesting, as you are not trying to insist in a "flat" tax.
I am unclear why a "wealth tax" is in any way more likely to make wealthy leave the nation verses any other kind of tax such as income tax.
Should capital gains be taxed the same as other income? I'm thinking possibly yes, as you suggest lowering the corporate tax rate to near zero, thus removing the "double taxation" (actually A+B-AB) argument against capital gains being taxed less.
I'm not sure if federal VAT or sales tax is a good idea. States wi
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Many of the wealthy, such as as Schmidt have their $ obtained through capital gains and typically paid less than 10%. Now, it is sitting in various properites, bonds, property, etc and we want to tax them again? Nope. That is why Schmidt and other billionaries are moving.
If capital gains are puilled, then absolutely they should be taxed. My argu
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"their $ obtained through capital gains and typically paid less than 10%. Now, it is sitting in various properites, bonds, property, etc and we want to tax them again"
Only realized capital gains have been taxed. An unrealized capital gain has never been taxed. You even note this yourself later, but fail to note it here.
And you still haven't answered the question of why the rich would leave under a wealth tax to any greater or lesser degree than they are currently.
Re: Enough to show why Dem's wealth tax will fail (Score:2)
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Re: Enough to show why Dem's wealth tax will fail (Score:2)
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1) remove all tax breaks, exemptions, write-offs, etc.
In 2011 (the most recent numbers I could find), the average US Senator's net worth was $14 million, while the average Representative's net worth was 6.5 million. I realize you're talking about income rather than wealth, but in general income is going to track net worth.
So while I like your idea, it'd be DOA on the hill.
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And it is far far better than taxing wealth.
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Why is it insane? It costs a lot of money to protect a country's wealth and property.
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All of the wealthy ppl will simply leave the nation.
That doesn't matter - they have to give up their US citizenship to stop getting taxed in the US. We live in Canada and my wife is fed up with how she still has to file US tax returns and avoid certain standard Canadian investment devices like Canadian ETFs because of punitive US taxes clearly designed for US residents. The number of US citizens here giving up their US citizenship is soaring, so much so that the US has enormously increased the exit fee for citizens. Other than Eritrea the US is the only cou
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He didn't say worldwide income, he said "regardless of residence."
I pay Canadian taxes on US income, due to a tax treaty. But if I lived in the US, or anywhere that wasn't Canada, I wouldn't pay any Canadian taxes at all, or have to file a tax return.
The US is one of the very few countries in the world that has citizenship-based taxation.
Tax Worldwide on _Residents_, not Citizens (Score:2)
There are a few other countries that tax world-wide income
That's not the same. Most, if not all countries tax the worldwide income of people living in that country. No country, other than the US and Eritrea, tax the citizens of that country even when they are not living in the US. US citizens living in Canada have to file both a Canadian tax return AND a US tax return even if they have zero income from the US. However, Canadian citizens living in the US only have to file a US tax return. Similarly, living in Canada I just file a Canadian tax return even though I