Amazingly enough, I wrote about this last week! Rather than pay an amazing $575 million in taxes on his IPO, Saverin, billionaire co-founder of Facebook is renouncing his US citizenship to avoid the tax bite.
This is just one way that the very wealthy exercise tax avoidance. So Obama’s unceasing desire to increase taxes on this group will be met with tax avoidance. People don’t become very wealthy by not understanding or having advisors that understand tax code and proper legal avoidance of taxes. Money will be off shored and businesses will outsource labor and production. What ever must be done will be done to avoid paying higher taxes.
Two comparisons of tax rates: