Xi just sent a tough message to China’s super-rich during a top-level finance committee of the CCP, on income equity:- Excessively high income to be reasonably adjusted - Regulation for high-income group to be strengthened- Illegal income to be resolutely banned pic.twitter.com/DhrmRIgdZO— Stuart Lau (@StuartKLau) August 17, 2021
The framing around that should always be that it’s a good thing the rich who won’t pay taxes are leaving. If there is a profitable niche then it will be filled by somebody else who’s willing to pay their fair share, it’s really that simple. So, the rich leaving should be seen akin to shaking off parasites who are a drain on the economy. Furthermore, it’s not like they can take their assets like factories with them, so those will be left in the country and can either be nationalized or turned into worker owned cooperatives. The country literally loses nothing in the process.
Furthermore, it’s not like they can take their assets like factories with them
This is one of the most important points. Capital flight is a problem only in governments that are naive enough to allow it, like the eastern bloc and the russian federation after 1991.
Why not? You can get a Malta citizenship for around 1 million euros and there are plenty of cheaper options if you have more time and don’t mind not being in the schengen zone. Portugal also has a great deal for around half a million. And you only need to be there for 2 week of the year.
Citizenship is not the primary issue; rich people already have the whole world open to them, if they want to go somewhere, they can. No hassle for them.
But they have to have a way to make money. These are business owners in China and there are various reasons companies choose to operate in their area, with taxes being very low in the list. They want local talent, they want security, they want potential to grow… they want a whole lot of things before low taxes even comes close. It’s also a very compelling argument against the neoliberal tax race to the bottom.
So sure they can move to Malta – but they already could before Xi announced this income equity reform. Instead we should ask why did these business owners not move before? And there will be our answer as to why they will not emigrate even after this reform.
all the comments talking about the rich fleeing as if it’s as simple as that lol. It’s not as easy as “taxes go up I leave, taxes go down I come”.
The framing around that should always be that it’s a good thing the rich who won’t pay taxes are leaving. If there is a profitable niche then it will be filled by somebody else who’s willing to pay their fair share, it’s really that simple. So, the rich leaving should be seen akin to shaking off parasites who are a drain on the economy. Furthermore, it’s not like they can take their assets like factories with them, so those will be left in the country and can either be nationalized or turned into worker owned cooperatives. The country literally loses nothing in the process.
This is one of the most important points. Capital flight is a problem only in governments that are naive enough to allow it, like the eastern bloc and the russian federation after 1991.
TFW you have actual means of production rather than a financialised circus of an economy backed by a fascist military
Why not? You can get a Malta citizenship for around 1 million euros and there are plenty of cheaper options if you have more time and don’t mind not being in the schengen zone. Portugal also has a great deal for around half a million. And you only need to be there for 2 week of the year.
Citizenship is not the primary issue; rich people already have the whole world open to them, if they want to go somewhere, they can. No hassle for them.
But they have to have a way to make money. These are business owners in China and there are various reasons companies choose to operate in their area, with taxes being very low in the list. They want local talent, they want security, they want potential to grow… they want a whole lot of things before low taxes even comes close. It’s also a very compelling argument against the neoliberal tax race to the bottom.
So sure they can move to Malta – but they already could before Xi announced this income equity reform. Instead we should ask why did these business owners not move before? And there will be our answer as to why they will not emigrate even after this reform.