Au Revoir, Entrepreneurs

Concerning expatriation, I think many people want to live abroad just to experience a different lifestyle. It's not always about taxes.

Like he decided to live in Kengsinton. Sure he share, like most singles in London, but he tries to live the life and was not too successful (yet, hopefully for him).

This is a big problem with current envy-driven politics surrounding wealth.

A lot of people don't like seeing bankers with big bonuses after they trashed the economy for everyone else. They're suspicious of old money children who have inherited a fortune but seem to have contributed little of value themselves. They're envious of highly paid sporting or artistic celebrities who get more salary in a week than most of us make in a year.

And so they support punitive rates of tax for those who earn noticeably more than they do, not necessarily based on any rational economic argument, but more because they feel it's "fair" for the "rich to contribute more" or some such argument.

Unfortunately, what that usually does in practice is hit highly qualified professionals or modestly successful entrepreneurs. It hits the doctors who spent years training, then more years working long hours for little money as juniors, and who finally made it to more senior positions where they are literally in a position to save lives with their greater experience but earn a fair bit of money. It hits the top public servants: the veteran judges, the experienced military commanders, the senior civil servants, basically the kind of people who keep government actually working despite the whims of successive political administrations. It hits the lucky entrepreneurs, the ones who made it after maybe putting their lives on hold for years and investing their savings to build a real business that creates value and maybe jobs for other people. All of these people are the kind of people we really need in society to keep everything working, and usually they are people who have reached those positions not through good fortune or family connections but through a lot of hard work over a long period of time.

However, the people these punitive taxes don't hit are the ones that the popular moneylust craves, because the super-rich are the people who have the flexibility to move their assets and/or themselves around to avoid high-tax environments. Absent serious international co-operation to overcome the naturally competitive tax environment that today's globalised society creates, these people will continue to be super-rich no matter what.

I like to think that if the people supporting these high rates of tax for those with some above average level of wealth realised who they were really targeting, we'd have a different attitude to taxation today. As it is, I fear the politics of envy will continue to trump rational economic policy for the foreseeable future, and unfortunately the people who actually did earn their wealth will be the ones who suffer most for it.

Corruption is the core problem. I think that worry about corrupt businesses is misplaced when a corrupt government is 10x worse.

everything from insider trading

There's a good example right there. Congress can inside trade. It's absolutely extraordinarily corrupt. They wrote a law a while back to prevent it when there was some press on it, but then quietly scaled back the restriction.

Consider this: Political office holders can lie to us outrageously and never face repercussions besides (perhaps) not being re-elected in a future cycle. You could list case after case of politicians who knowingly made definitive, verifiably false claims that have caused real damages to people. If they were officers of a public company, they would be sued into oblivion. They would be hounded by the Justice Department. But since they're in the political club, they've written the rules so that they can't be held accountable.