So like a lot of you I'm sure, I've seen a similar response from a lot of individuals when somebody suggests that we tax the uberwealthy at a very high percentage of their wealth. Like 80% on anything over “x”. The refrain is along the lines of “They'll just leave!”
Now, I'm absolutely not the most educated or the least ignorant with respect to this issue/topic. But from my understanding, the wealthiest Americans simply don't pay tax on their wealth. There's many loopholes that allow them to do this. (If I'm wrong, in any way, please educate me to the best of your ability)
How would losing people who already don't contribute be a net loss? And has this ever happened before?
Also, how was FDR able to raise taxes on the wealthy so high without losing them? What is the difference between then and now that makes it so we are incapable of instituting similar reforms successfully? I'm speaking purely in the sense of regulations, loopholes, the manner in which wealth is accrued now as compared to then. Not so much about politics or political will.
I've read about the New Deal and how it raised income tax on the wealthiest Americans and closed loopholes but I'm not certain what those loopholes were or if they were reinstated. I've also seen nothing in my research on the New Deal about taxing wealth, everything I've read is about income. But from everything I've learned from ( I know, I know) people on Reddit, there's a vast difference between income and wealth and attempting to raise the income taxes of the rich wouldn't net much of anything while attempting to tax their wealth at any meaningful rate will send them fleeing the country.
So I'm just curious if people who support raising taxes on the wealth of the rich know how to avoid these potential pitfalls or how we would go about doing it successfully? I'm equally as curious if the people who claim that raising income taxes on the rich won't net much and trying to tax their wealth would send them running have a solution that WOULD work and not just detractions?
I appreciate any time and effort people spend on viewing and responding to this. I only ask that before you do, really ask yourself if you know what you're talking about and can you back it up with any data or precedent. I'm genuinely looking for verifiably correct answers, not speculation.