If you don’t want wealthy people to use tax havens — lower taxes for wealthy people at home. It is very simple.
If you are a wealthy person, the first thing you are going to do is look to lower your tax liability.
You will do this by hiring experts who no regular Joe could ever afford to hire. That tax expert will find every loophole in the increasingly (and ludicrously) complex tax code they can.
After they have milked every loophole, they will then look to start putting money in other countries who literally roll out the red carpet because they want you to come and invest in them.
How do I know? Because I did it myself.
When I made my first $1 million I had nearly 50% of it taken away from me.
That was the worst feeling on Earth.
I felt like I was being penalized for being successful and putting in all the work to get there.
So I hired someone to help me plan better and my goal was to pay the least amount of taxes as humanly possible.
I moved my business and address to a different State with the absolute lowest taxes, I got offshore bank accounts, I spend 11 months out of the year outside of the US so I pay even less (some call it “geo-arbitrage”) and much, much more.
None of this is illegal.
And I am overwhelmingly putting my money in countries (like Georgia) who make it the easiest for me to do business for the lowest costs and the least red tape.
And nothing will ever change this.
Because politicians LOVE playing both sides.
They love providing countless loopholes (and expanding the already complicated tax code) to the richest people and corporations while PRETENDING they are “taxing the rich.”
The only thing that happens is businesses just MOVE.
They just go anywhere else where the taxes are lower and it’s easier to operate.
And they hire the people in those other countries.
ANYBODY would so that. The issue is that most people can’t afford to do all this stuff.
So who really suffers?
Your every-day taxpayer who now has to shoulder the increasing burden caused by capital flight.
But given the choice between paying nearly half of my hard-earned money to a government I do not respect and who I believe mismanages everything to the point of not being able to find their asshole in a room full of mirrors…
…or using that same money to grow and reinvest and put it to better use.
I am naturally going to choose the latter.
Barring actually making it ILLEGAL for the citizens of your country to move, travel, open accounts in other places, start businesses abroad and more — nothing will ever stop this.
There will always be another country hungry for investment who will lower their taxes and attract everybody in.
And if you did decide to literally chain your citizenry to a country and penalized them from moving and shifting operations to lower tax liabilities — then many would just shut down their businessas.
What is the point in succeeding? The more money they make, the more they have to pay.
So why not just stay in the lower tax brackets?
People operate off incentive.