Keep mind that Saverin, James and Boeing are extremely visible ramifications of high taxes and regulation. What is impossible to measure is the amount of business activity that is forgone because of the tax code. It simply doesn’t make a whole lot of sense to work harder if that means a higher percentage of your hard earned income ends up in the hands of Government. Thankfully, even Obama understands that basic economic principle, which is why he extended the Bush tax cuts and is poised to do it again.
Some great letters to the WSJ regarding Saverin
It is no small irony that Sen. Chuck Schumer is so intent on punishing Eduardo Saverin for renouncing his citizenship by imposing a punitive 30% exit capital gains tax.Mr. Schumer is a member of the static tax crowd (the flat earthers of the tax code) which justifies tax increases in part by the assertion that economic behavior and investment decisions do not change in response to changes in tax rates. So here we have Mr. Schumer now seeking to punish Mr. Saverin for engaging in the very behavior that he claims doesn't happen.
Christopher D. Cortese, CFA Seattle
It is disheartening to read that the Journal has joined the populist chorus demonizing Eduardo Saverin for, among other things, ingratitude ("The Saverin Lesson," Review & Outlook, May 18). What's next, editorials attacking U.S. companies when opening factories overseas? How about those New Jersey ingrates who move to Florida to reduce taxes? Let's not forget about Boeing's ingratitude toward Washington state for opening a factory in South Carolina. If the actions of Mr. Saverin and others force our government to rethink its penchant for excessive regulation and taxes, it is the Journal that may be accused of ingratitude.
Robert Aberman Passaic, N.J.