I'm not sure a significant portion of people will renounce their citizenship over the capital gains tax rate. We didn't have a brain drain or mass emigration when the top income tax rate was 91% either.
To make tax policy based on a fear of wealthy Americans deciding to stop being American seems ludicrous.
Similarly, I think investment capital will remain in the US because of the opportunities this country provides for investment and enterprise. You have many countries which have much lower, or even zero capital gains taxes and only the ones with talent and the ability to produce return attract and maintain significant amounts of investment capital.
The Isle of Man, Jamaica, and Mexico don't have any capital gains taxes, but are obviously not attracting the kind of capital that the US does- and for good reasons.
When the top income tax was 91% (from 1951-1964), the capital gain tax was 25%. So while doctors and small businessmen pay >50% tax on earned income the uber rich paid 25%
To make tax policy based on a fear of wealthy Americans deciding to stop being American seems ludicrous.
Similarly, I think investment capital will remain in the US because of the opportunities this country provides for investment and enterprise. You have many countries which have much lower, or even zero capital gains taxes and only the ones with talent and the ability to produce return attract and maintain significant amounts of investment capital.
The Isle of Man, Jamaica, and Mexico don't have any capital gains taxes, but are obviously not attracting the kind of capital that the US does- and for good reasons.