I sympathize with people who say the rich should pay more in taxes. A country needs money to operate, that money has to come from somewhere, and it makes sense for those who are the most fortunate to kick in a little extra. How much extra is always a matter of debate, but I think most people agree that some form of progressive income tax is appropriate, and we are all frustrated when we hear that some big corporation is paying little or no tax.
A lot of people believe the U.S. doesn’t impose enough tax on the wealthy, and with the changes coming in our national politics, this will be one the agenda again.
I’m not an expert on taxation, but it seems to me that a major problem with this idea is that it’s often easy for the rich to move. Countries and states and cities compete to attract new businesses so they can get the tax revenue, and one of the ways they do this is to lower taxes — because a lower portion of a big number is often better than a higher portion of a small number. If California decides the rich aren’t paying enough and raises the tax rate, people (and companies) will move to more tax-friendly states. And if the United States raises its taxes, people (and companies) will move to more tax-friendly countries.
Do the people who want to raise taxes believe they can force the rich to stay where they are?