Economic education in America being in the sorry state that it is, few people understand the real dynamics of taxation. This leads inevitably to the belief that raising tax RATES will inevitably raise tax REVENUE. Politicians, ever hungry for more revenue (with which they purchase high-visibilty job security), scramble to raise rates, almost always saying they are only raising rates on “the rich.”
One of the many good things about being rich is that you have a lot of freedom of movement. If taxes are too high here, you can simply hop on your Gulfstream and go there.
That’s why new French president Nicolas Sarkozy is casting an eye toward Great Britain, in the hope of wooing back wealthy French expatriates who fled France’s taxation on wealth.
John Tamny has the story here.
Is there any chance the Democrats will learn anything from France’s experience as they gleefully await the coming end of the Bush Tax Cuts?
YOU TELL ME.