> The extremely wealthy will move their wealth into complex multinational financial vehicles
In Elizabeth Warren's proposal, they would be subject to a 40% exit tax on the wealth that they moved. If they didn't pay the exit tax, that would be fraud.
As with most laws, the intention is noble but the outcome may not be. Every time a new law seems to be passed "strengthening" the tax code, it seems mysteriously effective against those who can't afford to pay a law firm's retainer and a lobbying group's salaries.
Who would wait long enough after that bill passed to keep their wealth in America? The second it went through congress the money would start pouring out
To be clear, in Warren's wealth tax proposal, it doesn't matter where the wealth is located. If you're an American citizen, you would be required to pay the tax on all of your wealth above $50 million, no matter where it is.
The alternative is to move your money overseas and renounce your American citizenship, at which point you would owe a 40% exit tax.
One could certainly hide their assets overseas, but that would be tax fraud, and if discovered would result in prison time for both accountant and wealthy individual.
In Elizabeth Warren's proposal, they would be subject to a 40% exit tax on the wealth that they moved. If they didn't pay the exit tax, that would be fraud.