This is now the 5th article that I have seen on this subject over the last couple of weeks. It seems that the press is finally beginning to take notice of the capital flight that Action America has been warning of for years. The problem is that when capital flight reaches a level high enough to get the attention of the press, the resultant publicity only serves to alert more of the wealthy to the problems causing capital flight, which in turn, causes capital flight to increase to even higher levels. That increase in capital flight then becomes news itself and causes even greater capital flight. That increase in capital flight then becomes news itself and... well you get the picture. It effectively becomes a snowball.
Yet, the above article only addresses corporate capital flight, which as the article points out, is not really a serious problem, since it actually serves to reduce prices and increase wages. The critical problem is that for almost a decade, the number of wealthy individuals who are leaving has been on a constant rise. But, unlike corporations that leave jobs in the United States when they expatriate, individuals are forced to take all of their wealth and the jobs that it creates offshore with them or risk it being confiscated by the IRS under the Health Insurance Portability and Accountability Act of 1996 (26 USC 877(a)(1)).
That law claims the right of the United States government to tax the income of expatriate Americans for 10 years after they renounce US citizenship and have become citizens of another country. So, if the expat leaves any assets in the United States, he can expect to have it confiscated for taxes. Therefore, the new expats just don't leave anything of value behind to be confiscated.
But now, our excedingly benevolent lawmakers, in their infinite knowledge, are trying to pass laws to tax the foreign profits of foreign corporations. It isn't bad enough to be the only country in the world that taxes the offshore income of both its citizens and corporations. Now people like Senator Charles Grassley (R-IO) and Representatives Richard Neal (D-MA) and Scott McInnis (R-CO) have the unmitigated gaul to suggest that we are now supposed to tax the foreign sourced income of foreign companies.
That is without a doubt, the most absurd concept that I have ever heard. Even Bill Klinton didn't have the brass kahones to propose that one. Notice that two of the leaders in that power grab are Republicans. It's time to ignore party affiliation and start voting power hungry autocrats like Grassley, Neil and McInnis out of office at the earliest chance.
Here are the links to the other 4 articles on this subject:
Also, check out the article "Tick-Tick-Tick - The Economy Bomb" on the Action America web site for more info and data pertaining to capital flight.
FACT:
The wealthy are leaving in alarming numbers!
The only way to stop it is to make the USA more attractive than offshore jurisdictions to both business and individuals. That means passing the National Retail Sales Tax.