Well, yes, obviously

A wealth tax could unfairly hit people who are “equity rich, but cash poor” and lead to a “flight” of high net worth individuals out of the UK, Sadiq Khan has said.

Imagine, just as the set up, that you’re one of those wealthy folks.

A capitalist, almost certainly – among the wealthy there might be a sprinkling of top top musos etc. The trust fund kiddies don’t count here because, well, trust funds are differently taxed.

To be on this rich bastard that must be taxed radar you’re going to be, well rich. Say, £10 million as a starter. At which valuation you can live pretty much anywhere.

OK. So, wealth tax. This is, when we come down to it, a fee for living somewhere. You’ve the choice of living many places, the ability to exercise that choice. Why would you live somewhere where they’re charging you a high fee?

Especially as the rules allow one to pick and choose in part. Organise yourself and you can still have 90 days a year in London – the plays, whatever – and pay no tax here.

6 thoughts on “Well, yes, obviously”

  1. Not every decision is economic

    Between New York State and New York City taxes I pay 13% more income tax than if I lived anywhere in zero local tax states such as Florida, Texas, or Nevada. Tennessee’s income tax is only 1% compared to New York’s 13. (Yes, I know income taxes aren’t wealth taxes, but 13% is a much higher rate than anybody is thinking of as a wealth tax)

    And yet I remain in New York. The 13% income tax is the price of living in New York.

    I must admit these past 20 covid months I’ve been wondering why I do it, since Mayor deBolshevik seems to have taken after his East German father and instituted stasi-like vaccine passports,(do vaccine passports make sense if the vaccinated infect the unvaccinated at a mere 12% lower rate than the unvaccinated infect the unvaccinated. i.e suppose an unvaccinated person will infect eight people, a vaccinated person will infect seven) closing down of churches, restaurants, jazz clubs, etc etc

    I just happened to like not needing a car. Being able to walk (at least in the pre-covid times) five blocks in any direction at any time of day or night and find pretty much whatever I’d like in terms of entertainment, food, etc etc. Can’t do that in most cities. Can’t do it in Austin can’t do it in Miami can’t do it in Houston can’t do it in Reno can’t do it in Vegas can’t do it in Nashville can’t do it in Memphis. You need a car in all those places. And (except for vegas), frankly the pickings for entertainment or food get mighty slim after 10:00 p.m.

    And being no more than an hour train ride away from my extended family is also pretty nice.

    Although at some point I will have to realize a capital gain that will put me into the kind of money that you use as the level at which someone would try to avoid a wealth tax. If I realize that capital gain while living in New York I will pay a one-time $13% extra income tax, a sort of one-time wealth tax. And as I get older, having the last set at the jazz club start at 10:00 p.m. instead of 2:00 a.m. doesn’t seem like a big constraint. So indeed I might move to Florida or Texas or Nevada or Tennessee and fly back to New York once a month to see friends and family.

  2. Count your lucky stars. You could be living in San Francisco where you get high taxes plus human shit on the streets.

  3. The advocates of wealth taxes care less about the potential additional taxes collected than they do about having far fewer wealthy people in town. If the wealthy left to avoid the tax it would be regarded as having helped achieve that goal.

  4. Dearieme. I live in the SF Bay Area. San Francisco is one of those cities that sits in a spectacular location – like Sydney, Vancouver or even Rio for that matter. And much of the city is as it was when I lived in it almost 40-45 years ago. I can visit friends out in the Avenues or the Marina and it’s not that much different from way back when. However, the downtown and shopping areas, the theatre district, and the nearby historically ragged Tenderloin have become appalling. That’s what a visitor is likely to see. The car break-ins and window smashing is become ever more common (I’ve been a victim). However, I often think that the progressives are actually creating the city they want. Apparently shit on the streets and massive numbers of people living in tents is indicative of grit, diversity and color. The residents do keep voting for more.

  5. T.C

    Don’t forget that places like Tejas without a state income tax have most excellent high property taxes.
    The state has the same need for revenues – they just collect it differently.
    The plus of a high income tax is that as you age and earn less, you pay less; while with the property tax you pay a percentage of what they think your property is worth. So with declining income you pay ever larger property taxes. Now, that’s liberty!
    True, at age 65 you can ‘freeze’ the amount of property tax you pay (for most of the tax components). But you make a single change to the property that comes to the notice of the taxing authority and lo! you’re back on the treadmill at the alleged market value.

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