Wealth taxes destroy more revenue from mobile tax bases than they directly collect.
The out-migration of high-net-worth individuals seeking to avoid wealth levies systematically degrades stable income and consumption tax streams, yielding a net fiscal loss for the taxing government.
The same conclusion keeps arriving from across the workspace's research — 1 topics independently instantiate this theme. Filter the evidence by where it came from:
It shows that Spain's double-decker wealth tax caused heavy capital flight to jurisdictions like neighboring Portugal, leaving the central government with a massive collection deficit.
It highlights how the departure of billionaires in response to California's proposed wealth tax threatens to permanently erode future personal income tax streams, leaving the state net-negative.
It illustrates how France's wealth tax triggered a tax flight of wealthy residents that ultimately degraded the state's broader, more productive income and consumption tax revenues.