Rich Mexicans Are Fleeing

[swing_voter]

Manuel Lopez Obrador, the President of Mexico, is scaring the rich into shipping their money abroad.

The very first signs of this capital flight date back to the run-up to Lopez Obrador’s landslide electoral victory in 2018, and they mounted after he implemented new laws against tax evasion late last year.

“You have all these political attacks on the wealthy, and that is creating a lot of fear,” said Salvador Juncadella.

Rich Mexicans are increasingly moving their family office operations to U.S. cities like Miami, Boston and New York, according to Juncadella and other advisers, some of whom asked not to be named speaking of client actions.

Mexicans have long been easily rattled and quick to move wealth overseas at signs of economic or social crisis.

Rich Mexicans Are Fleeing to Miami and Funneling Money Overseas | Financial Post

So they elected a socialist president in Mexico.

Now all the rich are leaving the country and taking their money with them.

Is it possible to tax the rich heavily without them leaving the country?

 

[Ikari]

So they elected a socialist president in Mexico.

Now all the rich are leaving the country and taking their money with them.

Is it possible to tax the rich heavily without them leaving the country?

Soviet Union built a wall.

 

[Slavister]

Is it possible to tax the rich heavily without them leaving the country?

At least used to be possible in US

 

[tosca1]

So they elected a socialist president in Mexico.

Now all the rich are leaving the country and taking their money with them.

Is it possible to tax the rich heavily without them leaving the country?

Lol. Moving to Miami? If Dems win - they'll have to flee again!

 

[Peter]

Europe has much higher taxes and somehow we still have a couple of people living here.

 

[swing_voter]

At least used to be possible in US

View attachment 67287786

The graph is misleading. When there was 90% taxes there were all kinds of exemptions and loopholes so the rich paid very little taxes. When taxes were reduced in the 80's, a lot of those exemptions and loopholes where eliminated.

 

[Slavister]

The graph is misleading. When there was 90% taxes there were all kinds of exemptions and loopholes so the rich paid very little taxes. When taxes were reduced in the 80's, a lot of those exemptions and loopholes where eliminated.

Yes, you are right - looks like it was misleading. A lot of it is due to capital gain rates being so much lower but yes, also because of greater tax avoidance and other factors. 1% still paid more taxes on average in earlier years - by about 10% more than today. That's significant but not as large as say 50% on marginal rate graph.

Here is a more accurate graph up to 2014 (before Trump giveaways to the rich).



Note: as I understand it, 0.1% and 0.01% had even higher average taxes difference vs today (when compared to roughly 10% tax rate reduction for the 1% as shown in above graph).

 

[Fledermaus]

Europe has much higher taxes and somehow we still have a couple of people living here.

Europe and the UK particularly were chided for their tax laws....

In the Hitchhiker's Guide to the Galaxy from Douglas Adams, the rock star Hotblack Desiato is "spending a year dead for tax reasons".