[yellow sitting, at a presidential desk] I’ve been thinking… if we tax the rich more fairly, they might just leave the country!
[blue, angsty, sitting in a chair next to the desk] Mr. President… I’m afraid you’re right, we can’t take that risk, we need them
[a rich character smoking a cigar next to a “0% LOANS” luggage] I hate spending and my wealth is unrealized gains, I contribute nothing to the economy
[another rich character is lounging in a deck chair on a beach, cocktail in hand, luggage on the sand] I’ve already left the country a long time ago
[another rich character leans against a stack of cash with a smug grin] My money is all in holdings, I barely pay any taxes
It has never been demonstrated by anyone who holds this bullshit “the rich might leave” argument how any value to the working class average Joe would be lost.
Even if we pretended they would all leave, they aren’t gonna shut down their businesses in the US, they and their shareholders make too much money in the US market.
Ironically, the greatest threat to the US market collapsing and losing all value is these rich cunts getting their way.
Rich people spend lavishly on luxurious homes, services, food, clothing, artisanal items, and such. They usually also pay for some art and culture they enjoy, keeping venues for performances and events open.
The rich leaving a city means lots of small businesses and artisans need to close or downsize. Service jobs get lost as well. The fancy bakery has to close. Restaurants close.
My cousin has a small restaurant. He makes the bulk of his money with catering for parties of rich folks. Without that business, the restaurant wouldn’t be profitable.
Luxury priced goods and services can be a bigger or smaller part of a local economy.
However rich people can also afford to pay a lot for stuff. Not all of them want to live in Dubai or Bali. They want to live where quality of life is high, exclusive, interesting, and high quality experiences are to be had, and where the other elite, interesting, rich, famous, and powerful people are. New Yorck City doesn’t need to worry one bit about getting less attractive to the rich.
Rich people and their capital move independently from each other around the world. For capital most of it will go to places where profits are to be expected. A smaller part will go to places the capital owners just prefer for their personal reasons.
That’s the capital owning class. It’s a little different for the professional class with high or very high income like some doctors, engineers, elite artists, elite athletes, and other specialists. They have actual income that can be taxed directly. These are also internationally mobile and can be attracted by high incomes elsewhere.
Talk about „the rich“ often confuses these two or doesn’t differentiate. A specialist doctor with a dozen employees, two homes, and two nice cars is certainly well off. Does he count as rich or not though?
The way „tax the rich“ is often implemented targets the upper middle class harder than the far richer upper capital owning class.
The more money you have the easier it is to circumvent taxes by setting up a series of companies that buy from each other.
Having been around actually rich people, what I found most surprising was that they often didn’t need to pay for stuff directly at all. I‘ve been taken on expensive vacations, where my host didn’t have to pay for the lavish villa we stayed at, or the boat, or the driver and car that shuttled us around. A lot of it is informal favors, vouchers, points, miles, and so on. That‘s also a way to obfuscate their real income.
That said. A strong middle class and well paid working class creates a far better economy and provides enough opportunities for artisans, and some quality luxury services.