Skip to main content

View Diary: No country for Zuckerbergs (193 comments)

Comment Preferences

  •  This is a myth as well. (0+ / 0-)

    I work with and for very wealthy people. While I don't advise them on their speculative investment decisions, I do advise them on a lot of other things.

    As a rule, wealthy people are not, primarily, interested in sheltering themselves from taxation. It is more of an afterthought to doing what they really want to do.

    Per your example, there shouldn't be any wealth in America at all, for example. While our tax rates are low, they could find rates of, well, zero, not very far from our shores. Such people also have the capacity to purchase citizenships in places that are already tax havens. Yet, these place aren't bubbling over with capital investment, and the U.S. still is. And so is Europe, which has relatively higher taxation than we do. It amazes people that Germany, with its heavy handed government regulation and heavily progressive tax structure is still the #1 attractor of foreign investment per capita in the world. It still has a healthy share of millionaires and billionaires. Why?

    Because for the most part, investment decisions are not rational and have a great deal to do with the values and motivations of the investor, which most of the time have nothing to do with taxation.

    •  Nice try... (0+ / 0-)

      present that line of thinking to a corporate finance professor on an exam and see what the outcome is on your score.

      While you may be a close advisor (but not financially) to some wealthy folks, I'd like for you to test your advisement credibility with your non-rational acting friends by suggesting that they invest in something with no consideration what so ever for the possible tax implication...I would bet that your services would be quickly terminated.

      Did you even consider that lots of wealthy folks reside in the US because of the current tax advantages. Doing away with the Bush tax cuts probably won't cause them to move to another country, but I can assure you that the recent debates on allowing the tax cuts to expire have caused the wealthy folks' to spurn their tax accountants and personal finance advisors to search for the most beneficial (e.g. rational) strategies to shelter monies.

      This may sound cynical, but those wonderful charitable donations by the rich provide a tremendous tax advantage

      Belief and seeing are both often wrong - Robert S. McNamara

      by Iggy1962 on Tue Oct 05, 2010 at 08:01:13 AM PDT

      [ Parent ]

      •  Thats because corporate finance professors (0+ / 0-)

        don't ever make real money. Thats why they are corporation finance professors and not entrepreneurs.

        I think the difference between our views is mine are shaped by years of dealing with self-made self-starters and yours deal with business school middle managers.

        •  thanks for the stereotype, but... (0+ / 0-)

          you have no idea who I am, nor do you have any idea who I associate with or what I do for a living.
          Seems a bit shallow and presumptuous to infer that I associate academics or middle managers.  

          Belief and seeing are both often wrong - Robert S. McNamara

          by Iggy1962 on Fri Oct 08, 2010 at 06:45:46 PM PDT

          [ Parent ]

          •  Your refuge frame of reference (0+ / 0-)

            always comes back to business school professors and corporation finance. That is, in my experience, the red-flag speak of a middle manager or academic.

            Real businessmen don't even speak like this. They're always in terms of "i feel this in my gut" or "my instincts are telling me this" or "this is my next big thing" or "im gonna fuckin damn it all to hell and go for it."

            I've never had a conversation about marginal tax rates and sheltering tax income with a businessman. That always seems to be the concern of people who leech off the real businessmen. Like doctors, lawyers, children, trophy wives, or retired shopkeepers who fancy themselves investors.

            Real businessmen don't give a shit about that because they'll make money in communist Cuba.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site