Impact of Draconian Tax Policies (Patreon)

Taxing unrealized capital gains and increasing corporate tax rates can have significant consequences for a country's economy and investment landscape.

When faced with such policies, corporations often seek more favorable tax environments, leading to a phenomenon known as corporate inversion or relocation. See IRELAND! See California. This exodus can result in job losses, reduced economic activity, and a shrinking tax base for the country implementing these measures.

High net worth individuals, similarly, may choose to relocate to jurisdictions with more favorable tax regimes when confronted with taxes on unrealized gains or higher overall tax burdens. This capital flight can have a detrimental effect on local economies, as it reduces investment, philanthropic activities, and consumer spending in the original country.

The departure of wealthy individuals and corporations can create a self-reinforcing cycle, where the loss of tax revenue prompts governments to raise taxes further, potentially exacerbating the problem and leading to even more departures. See Norway, See California, etc.

BILLIONAIRES THAT FLED CALIFORNIA FOR TAX REASONS

Elon Musk
Larry Ellison
Joe Rogan
Peter Thiel
David Sacks

Politicians think they can control food prices? That’s just crazy. And raising corporate taxes from 23% to 28% is a huge jump of 21.7%! This will hurt America’s ability to compete with other countries.Trying to fix prices and increase taxes? We’ve seen this before, and it doesn’t work.

In crazy tax regimes, wealth takes its flight,
For in the escape hatch, money gives us wings.

It’s hard to understand how governments fail to recognize this.