Skip to comments.Are Rich Americans Leaving The Country?
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. Theyre 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 cant 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.
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.
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...:)
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.
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.
I should rent out our back bedroom in Chiang Mai. :)
I don’t know how accurate these figures are but many older Americans have found it cheaper to retire to Mexico or Costa Rico and many people have second (vacation) homes overseas. I don’t find it shocking at all.
If you lived all your life in L.A.—why not buy a condo to retire to Baja—there is good care there and nice housing for a fraction of the cost in L.A. and you can easily fly home to be with your family.
Can’t say that I blame them. The rich in an Obamanation would be viewed much like the Jews were when Hilter first won in Germany.
I’m a loyal American. I still live in Michigan because it’s my home, I love it and I’m not giving it up without a fight.
However, many locations do not have the onerous property taxes we have in the States.
There are tons of places that are wonderful to live in. All you need is the money to maintain your wants and desires. If you’re rich, a nice little place on a Greek Isle would be heaven, or try the Swiss Alps, or Provence, France. Lovely places. New Zealand is an outdoor wonderland. Pacific islands very relaxing. Believe me, if you have the dough, the USA isn’t the magnet you might think it is. And this thread concerns the rich.
“Screw em and take away their citinship I say.”
Where Wall Street rich are concerned, a more appropriate statement might be “screw em and throw em in jail for life”. But one can’t blame people with money for wanting to escape being plundered to death.
Where are you going to keep it? your mattress? Seriously, I really would like to know. Is this just cash as opposed to investments in the stock market?
Where is that?
Who is John Galt?
Loads of tech people I know are going to Dubai. 5 times the salary level for the same skill set.
In 1923, my Grandfather emigrated to the U.S. from Germany. Inflation there was so severe that it was cheaper to burn money than to buy firewood or coal with it.
He learned English quickly, became an American Citizen, and never looked back. When asked if he’d like to visit “The Old Country,” he always replied, “I didn’t lose anything there. Why go back?”
He came here because conditions were intolerable in Germany. He worked hard, built a home, raised a family, and lived the American Dream.
Liberals / Socialists / Communists are attempting to turn the “American Dream” into a “Workers Paradise.” In other words, a freakin’ NIGHTMARE.
The U.S. was, at one time, the best place on earth to start over. If our Representative Republic cannot “start over,” I believe we’ll lose that republic. We’re pretty far down that road already.
I have told our son many times that, if life in the U.S. becomes intolerable, and there are better opportunities elsewhere, he should go and never look back.
Today, the U.S. is still the best place on earth to live, work, earn, raise a family, and realize one’s dreams.
But, if we continue the way we’re headed, that will cease to be.
I will do whatever is necessary to keep the republic, and I’m certain our son will do likewise. But, if the Liberals / Socialists / Communists ever gain the upper hand...
It should be common sense. But, apparently not.
Good info on that link. Thanks..
I don’t think Barry will be any harder on Wall Street than W has been. He may tax them but at least there will be something to tax.
I’m tired of paying the freight and taking the burden for people who don’t work. And having to listen to constant insults from the liberals while doing it. I’m not interested in an America where liberals rig the game to their advantage.
“Who is John Galt?”
Atlas Shrugged Bump!
God Save Our Country from the looters!!
One left last night- we lost Paul Newman to cancer.
I didn’t agree with his politics, but I sure liked his movies, his ability as a racer, and his grocery products are pretty darn good.
He was a champion of the Ronald McDonald houses for families who had kids in hospitals far from home getting medical attention. I think he may have been a founder of the concept.
I know it is easy to be so generous when you are making lots more than the tpical small business person, but he sure always had a twinkle in his eye.
I don’t see the analogy.
Your comments might make you feel good but they will not stop the problem. The wealthy do not want their assets and income confiscated. BHO has clearly indicated that he intends to confiscate their assets and income. I do not blame them. The country has become deeply distrustful of markets and private enterprise. The changes that the rats will bring in 2009 will be so profound that this country will soon resemble a bad version of a European socialist state. I see little possibility that the country will awaken from this distrust of private enterprise. No matter how bad the economic situation occurs, the power of special interest groups receiving government largesse will prevent changes. The shouts from unions, environmental groups, trial lawyers, welfare recipients (at least 1/2 of the population), seniors, and rat favored industries will derail any attempt at substantive change.
So much for "Country First" should be more like "Money First"
BTW: Americans are the hardest working and most productive people on the planet....
Nice, labeling American's as "who don't work". I guess you would prefer Chinese workers with 14 hour days, 7 days per week in bunk houses behind the factory.
Wish all the Hollywood idiots would move.
That is outstanding. I’ve sent it off to my email list. Thanks for posting!
“Every smart person I know on Wall Street is thinking this way.”
To what nations are they moving, or buying their getaway homes?
Orinial title: "Tax Cuts: A Simple Lesson in Economics."
See this regarding your post:
"Contrary to Internet folklore, Dr. Kamerschen is NOT the author of "Tax Cuts: A Simple Lesson in Economics." Additionally, he does NOT know who wrote it."
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