For Billionaires, a Heaven on Earth Beckons
Why do the mega rich in the United States feel so put upon? Their incomes are rising, after all, and the taxes they pay have never been lower since the 1920s.
In fact, even if lawmakers in Congress passed 100 percent of President Obama’s tax plan, America’s rich would still be paying taxes at less than half the top rate that America’s richest faced back in the 1950s.
America’s wealthiest, given this ever so friendly political lay of the land, ought to be kicking back and living care-free. But that’s not happening. This election cycle appears to have America’s super rich in a feverish frenzy. They’re pouring money into the 2012 elections at all-time record rates.
What’s behind this deluge of campaign cash? A few frenzied super-rich political donors have apparently gulped the Kool-Aid of America’s delusional right wing. President Obama, these crazed deep pockets almost seem to believe, has tumbrils waiting to cart them off to the guillotines once he wins a second term.
But most of our super rich remain eminently reality-based. They know full well that the rich in other major developed nations face political challenges far more unnerving than anything that confronts deep pockets in the United States.
In France, for instance, the lawmakers elected this past spring will be taking action this September to raise the tax rate on income over 1 million euros, the equivalent of $1.24 million, from 44 to 75 percent.
The tax plan President Obama has announced, by contrast, will only hike the top-bracket U.S. rate from 35 to 39.6 percent — and no one in Congress has anything remotely close to a majority for going beyond what the President is proposing.
So why do America’s super rich feel compelled to plow so many billions into politics? They already live in the most rich people-friendly developed nation in the world. What else could they possibly want? Well, they could want Singapore.
To be more precise: Many of America’s richest see no reason why they shouldn't be able to live in a nation that treats the “successful” and their fortunes with as much respectful deference that locales like Singapore so openly display.
And just how much deference does Singapore extend to its resident rich? Last week, in a vividly detailed new paper on Singapore's tax system, three analysts from the Deloitte global financial consulting network described how extraordinarily rich people-friendly a modern economy can be.
In Singapore, the Deloitte analysts relate, residents pay no more than 20 percent of any income dollar over $250,000 in taxes. And many income dollars over $250,000 face no tax carve-out at all — since Singapore levies no tax on capital gains, the profits from buying and selling stocks and other assets.
Singapore also doesn’t bother taxing any income that its richest residents grab from abroad, even if these residents have that income remitted into Singapore. Residents instead only face taxes on their “Singapore-source income.”
The rich who reside in Singapore don’t even have “to report their foreign bank accounts or other foreign financial assets” to Singapore’s version of the IRS.
Nor do Singapore's wealthy have to worry about their grand fortunes shrinking once they pass on to the hereafter. Singapore hasn’t had an estate tax on the books since early in 2008.
Some Americans seem to find this total tax package that Singapore offers absolutely irresistible. In 2009, the U.S. embassy in Singapore reports, 58 Americans renounced their citizenship and set up residence in Singapore. In 2010, that total apparently hit close to 100.
Singapore certainly has its charms, but most tax break-hungry Americans of means don't seem particularly eager to take up residence for at least 183 days a year. Their alternate endgame: bring Singapore stateside. In places like Singapore, these Americans see a vision of what the United States could become.
A vision too far-fetched? Not at all. GOP White House hopeful Mitt Romney has already pronounced his support for dropping the federal tax rate on top-bracket income down to 28 percent, a point nearly halfway from the current 35 percent top rate in the United States to Singapore's 20 percent.
And Romney's newly announced running mate, House Budget Committee chairman Paul Ryan, has already proposed eliminating taxes on capital gains.
America’s rich have come a long way over the past half-century. Why couldn’t they go further, to full-fledged Singapore-style status? The more important question: Will we let them?
CONNECT














14 comments on "For Billionaires, a Heaven on Earth Beckons"
August 15, 2012 1:11pm
Raise the top marginal rate to 55%! Do it today!
No, they might take the jobs overseas! Oh, wait.
August 15, 2012 8:14am
TAX THE RICH OVER THE FISCAL CLIFF
August 14, 2012 1:31pm
'The Middle Class can kiss my ass,
I'm in the Upper Class at last!'
- an old British refrain.
August 13, 2012 6:17pm
So these wealthy want the breaks given to the wealthy in Singapore but most of them return to the good old U.S.A. to live. They deprive this country of a fraction of their precious wealth to sustain this once great country yet they refuse to abandon it to live with their money. As the country's infastructure continues to fall apart and it's citizens increasingly move down the ladder of opportunity do they really expect that their chosen home is going to remain the same ? Find the Singapore culture not to your liking ? Get use to it as 3rd world America will likely not receive you with open arms !
August 13, 2012 2:15pm
The author of this article asks whether we will let them.
The fact is that we are.
Yes, Romney-Ryan-Repubs will get us there faster, but as the author timidly notes, Obama champions a plan that will not even restore us to the tax policy of the fifties under an Eisenhower-Republican administration. In case you missed it, in 2009 Obama paid his respects in public to the Wall Street CEOs who funded his 2008 campaign, even after they bonused themselves in the millions with bail-out funds. And in case you missed it, his D of J just declared they'd not be prosecuting any but a handful of small-fry for all the banksterism that cost millions their jobs, homes, savings and futures.
Whether in the Dem slow lane or Repub fast lane, we will arrive in "Singapore" soon enough.
After all that has happened, that Romney-Ryan can champion more of the same without being savaged by mobs, and that Obama can chastise a crowd for booing when he complimented Ryan, and not himself get shouted down for it, tells you a lot.
The sheep are on the superhighway to hell, and they are not demanding an exit.
August 13, 2012 12:20pm
Ours is a country of 300 plus million people while Singapore is a once British trading colony the size of a city. See CIA World Factbook entry on Singapore. They probably make a lot of money attracting billionaires with the promise of very low taxes and live on the income from finance industry. In terms of infrastructure, all they have to deal with is for a city of 5 million with an area about 4 times that of Washington DC. (I havent researched this point, but I am sure they have no military to speak of, and no pretensions of ruling the world).
Our billionaires must be really naive to think that the model can be extrapolated to the USA.
August 13, 2012 2:54pm
I'm afraid it is you who are naive, good sir. In only a few decades just 600 USA billionaires have accumulated more wealth than 125,000,000 Americans.
The great transfer of wealth continues unabated as we speak.
We are in fact well down the road to a uniquely American "Singapore".
August 13, 2012 2:11pm
The word on the street is that Singapore makes the middle and lower incomes shoulder the tax burden. That's romneys plan.
August 13, 2012 11:16am
Socilaized Elitism is what Romyan represent. All the rules written by the select few for the select few at the expense of the many. All that is missing are the monkey suits and the concentration camps.
August 13, 2012 10:50am
Why???
Because they can.
Lots and lots of anything is still not enough.
But there is still more to accumulate and someone else might get it.
Get it?
August 13, 2012 10:35am
The righties mostly do accept that we should care for the poor---- through charity, not taxes. To me, however, " charity is the enemy of justice." Therefore, we need progressive taxation, adequate to providing---Inarguably, the ultimate goal of a fair and equitable society, is to provide that, the son or daughter of poor or middle class parent(s) has an opportunity at upward mobility equal to a son or daughter of rich parent(s). Therefore, the taxation structure--income and all other taxes and fees--must provide for a) access to good nutrition, b) access to adequate housing, c) access to quality health care and d) equal access to education and advanced education. Taking advantage of this equality, however is, then, up to the individual; and this individual will then, be a member of a very productive, advanced and enlightened society.
August 13, 2012 2:25pm
The problem with any charity is that at anytime they can stop.
August 13, 2012 10:41am
Removed a repeat.
August 13, 2012 10:34am
Hail to the Thiefs!