Not gonna happen. They'll just threaten to move to another country. It's a prisoners dilemma for all countries. You can either give in to demands for lower taxation and hope that re-domiciling will over compensate for the tax reduction or increase taxation and lose tax payers to other countries.
The US taxes on global income all citizens, even those living abroad. The only way to avoid that is to give up your citizenship, but then you have to pay an exit tax as if you had liquidated your assets. Even if you go to a country with a taxation treaty, you'll still be paying the minimum of the two countries to some country. If the other country taxes you less, you pay the difference to the US.
That's the same as saying, you eventually pay the maximum tax rate of the involved countries. I think that's the standard practice of double-taxation avoidance agreements (DTAA).
The one thing about rich people is that they’re very greedy. But that greed often fuels economic activity. They don’t take the money their companies earn and hide it under a mattress, because inflation would make it lose value. Instead, they reinvest it, which either creates new jobs or expands the company’s assets.
Expanding assets can mean building new factories, ordering more raw materials, or entering new markets. Each of these steps involves third-party vendors: construction firms to build facilities, delivery companies to transport materials, mining companies to extract resources, suppliers, logistics providers, marketers, and contractors.
All of this spending creates jobs. Maybe not directly within their own company, but across the many other businesses that support their growth.
Where is all the cash going then? Dividend payouts have stayed roughly the same since 2000 and S&P 500 trade volumes have sky-rocketed since then. Firms and individuals are reinvesting cash at the same historical rate.
It's really not a dilemma. Those are US dollars - property of the united states government - and we can give them to whoever will use them best. Forcibly taking billionaires money seems scary, but when you realize most of them hate the median American (what else could you call the current wealth gap), it's the only sensible option. We need a new class of elites that love and have connections (race, history, religion) to their people. That being said, there's a reason "blood and soil" gets such a bad rep - our current elites would quickly be replaced, so the dominant narrative is "you're hitler if you want to take care of your countrymen".
Meanwhile, our tax dollars fund a genocide and we poor trillions into AI while the rest of the country suffers.
