November 4, 2021
Federal tax hikes will push wealthy Americans overseas
By Andrew Henderson
Congress has begun its year-end sprint, and the debate over rising taxes is as hot as ever.
Crucial to President Biden's $3.5-trillion agenda is a wide range of tax penalties targeting the wealthy, broadly defined as households with incomes over $400,000 ("the usual targets"). Democrats claim that the only targets are wealthy Americans, who face higher rates and closed loopholes. For example, the Biden administration's "American Families Plan" would raise the top marginal income tax rate from 37 percent to 39.6 percent. While this particular tax hike may now be in limbo, politicians have plenty more tricks up their collective sleeve.
But Congress must tread carefully. While the "tax the rich" mantra appeals to people who believe in an expanded social safety net, the reality would bring unforeseen consequences. In theory, taxing the rich means forcing them to fund more government programs. But in truth, tax hikes on the wealthy force them to weigh their options and look overseas to store their wealth — that is, look outside the United States.
It's already happening. And while the mainstream media portray "offshore" as sketchy, it's perfectly legal when done properly. The recent "Pandora Papers" investigation revealed more than 200 U.S.-based trusts linked to over 40 countries. At the height of the COVID-19 pandemic, Swiss banks saw 40-percent increases in profit and billions of dollars in new money.
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https://www.americanthinker.com/blog/2021/11/federal_tax_hikes_will_push_wealthy_americans_overseas.html
