Posted on 09/27/2008 8:36:33 AM PDT by newbie2008
The Zogby results are shocking – especially compared to the entire U.S. population (now about 303,116,000). The numbers below are for households, not individuals.
• 1.6 million U.S. households already decided to move offshore and are headed in that direction. • Another 1.8 million households are seriously considering moving and are likely to do it. Many have taken preliminary steps. • 7.7 million households are “somewhat seriously” considering moving and “may” do it. • Nearly 3 million households are seriously considering buying a vacation home or other property outside the United States. Another 10 million are “somewhat” seriously considering it.
This means that almost 10% of U.S. households are considering leaving the country. Another 10% are considering living outside the country part-time. Most analysts are ignoring this silent massive emigration.
These would-be emigrant households plan to spend an average of US$260,000 on buying or building a house. They’re also planning to spend at least US$36,000 annually on living expenses outside the United States.
In total, they represent hundreds of billions of dollars leaving the U.S. economy each year.
Tax haven countries are recording significantly larger numbers of US applicants for permanent residence or second citizenship every year. Keep in mind that most of those expats are wealthy, since poor people can’t afford to leave. In fact, millions of poor people risk their lives in the back of trailers or crossing Arizona desert every year, to take advantage of our increasing welfare state. It is the wealthy, who are leaving and they represent lost US investment dollars and subsequently, LOST US JOBS…
Every smart person I know on Wall Street is thinking this way. Barry may win, but he’ll have an empty safe to pilfer.
You get more of what you reward, and less of what you punish. That holds true especially when applied to failure and success, respectively. There are some political upsides to a global economy, and one of them is the force of downward harmonization exerted by differential tax rates. It is the same reason why federalism is so critical for the long-term strength of America, and why global government and international regulations are so dangerous for liberty and prosperity.
Good time for a Bar Stool Economics reminder:
Bar Stool Economics
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. ‘Since you are all such good customers, he said, ‘I’m going to reduce the cost of your daily beer by $20. Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes, so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’ They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so: The fifth man, like the first four, now paid nothing (100% savings)
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant the men began to compare their savings.
‘I only got a dollar out of the $20,’declared the sixth man. He pointed to the tenth man,’ but he got $10!’
‘Yeah, that’s right,’ exclaimed the fifth man. ‘I only saved a dollar, too. It’s unfair that he got ten times more than I!’
‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? The wealthy get all the breaks!’
‘Wait a minute,’ yelled the first four men in unison. ‘We didn’t get anything at all. The system exploits the poor!’
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D.
Professor of Economics, University of Georgia
For those who understand, no explanation is needed.
For those who do not understand, no explanation is possible.
So where do these folks move to? I can’t think of anywhere I’d rather live than here.
ping
But as soon as the sh*t hit's the fan to whatever country they are in they will expect Uncle Sam and American Soldiers to protect them and make safe passage back to the good old USA. "Oh come help us we are American citizens in dire need..."
Screw em and take away their citinship I say.
If I had the net worth I’d be gone as well.
Nice explanation...
I mentioned to my wife that a Catholic conservative is now the PM in Japan. She said “well maybe that’s a place to go if Hussein wins”
Good for them. I’m thinking about it myself.
Of course they are and I understand why!
Read all about it right here.
awesome... hope you don’t mind if I use it in emails...:)
JEESH
You all sound like a bunch of Alec Baldwins. I’m going to leave if obama get’s in.
Leave the best country in the world? Where you made your fortune from the American people?
Nie loyalty you have there.
Don’ let the door hit you on the a** on your way out.
Book Mark
I’ve considered Australia (and I’m not rich), but that’s getting as bad as here, isn’t it?
I’d move to Thailand if I could retire.
They like Americans, everyone is friendly, it’s warm, and cheap. Nothing to do with Sex...it’s a beautiful country. I enjoyed my trip there.
Exactly. Which country(s) are they moving to?
Broadband makes the world a smaller place. You can live anywhere you want and still be in constant contact. Its just not that big of a world anymore.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.