• Mavvik
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    2 days ago

    Capital flight is a myth. Not only that, but some capital is just challenging to move. Irving and Weston arent going to move their whole operations to other countries. Plus Canada has an exit tax.

    • masterspace
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      2 days ago

      Capital flight is often blown up into a bigger issue then it is by conservatives to avoid taxing the wealthy, but it is not a myth. It is a real effect that governments need to take into account when making policy decisions.

      I.e. If it was a myth, we wouldn’t have an exit tax.

      • anachronist@midwest.social
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        2 days ago

        It’s a myth that rich people aren’t already avoiding every tax they can. They would have you believe that there are rich people not currently avoiding a 20% tax who would avoid it if it were 40%. In fact they’re already doing everything they can do to avoid it and if they’re paying it at 20% they would still be paying it at 40%.

      • Mavvik
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        2 days ago

        Its a myth in the sense that it isnt significant except in extreme scenarios (e.g. violent regime change, economic collapse). A modest wealth tax will not make that happen.

        • masterspace
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          2 days ago

          I mean, it’s different because California is a state and not a country, but they are seeing some capital flight because of their wealth tax. I’m not saying that makes the wealth tax not worth it, I’m just saying that it is a real effect.

          Free trade created the free movement of capital but not the free movement of labour, and capitalists can exploit that.

          • Mavvik
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            2 days ago

            Has this capital flight resulted in a measurable negative impact to California’s economy?