Another rich US subject is getting ready to flee the growing predation of the taxman. This week John Paulson of hedge fund Paulson & Co. is taking a long, hard look at a move to Puerto Rico for the explicit purpose of eliminating taxes on $9.5 billion in gains he invested in his own hedge funds.
Should he go through with the move, Paulson would be joining ten other wealthy Americans who would be paying no local or US federal taxes on capital gains, thanks to a fairly new Puerto Rican law. This is just part of a larger and growing trend in which the wealthy from all over the decaying Western world are "voting with their feet" and escaping the increasing levels of armed robbery by their governments.
France leads the pack in the theft with socialist president Francois Hollande proudly declaring his hatred for the rich while looking to steal 75% of their earnings in order to redistribute to those who didn't work for the wealth - and, in fact, are proven destroyers of wealth. That sent actor Gerard Depardieu packing for Belgium and ultimately getting Russian citizenship (and flaunting his Russian passport for the cameras). Depardieu's (former) countryman, uber-rich Berard Arnault has applied for Belgian citizenship.
Leaving one Western nation for another strikes me as leaving the fire for the pan. Things may currently be better tax-wise in Russia or Belgium than in France...but Paulson and his ilk seem to me to have the better idea by heading for Latin America and the Caribbean. Places like Puerto Rico, the Dominican Republic, Chile and Paraguay all treat their residents' money very well. But more on that in a bit.
Do Governments Get It?
Increase the abuse of taxation too much and everyone who can will flee, starting with those with the most to lose. And in a regressive (they call it progressive) tax system, the highest earners always have the most to lose. In the USSA, the federal rate on top earners is 39.6% on ordinary income, including "short-term" capital gains and interest. Longer-term capital gains are taxed up to 23.8%. In Puerto Rico, however, capital gains made after a move to the island are tax free. New residents also benefit from a new law that only steals 4% of business income earned in Puerto Rico. Dividends and interest from US companies are still taxed by the US feds at the federal rate.
The 4% tax rate on business income could apply to Paulson's income from hedge fund fees. 39.6% versus 4%: Is it any wonder Paulson is considering moving?
Of course such simple logic escapes collectivists who think that everyone who earns more than they do should happily hand the extra money over to the mob bosses in congress or parliament. And the mob bosses are only too happy to whip up accusations of "treason" when people try to minimize the violence done to their wealth.
Puerto Rico Attracting Wealth By Treating It Well
New residents of Puerto Rico are even exempt from the local 10% capital gains tax. This is by design. Puerto Rico is looking to attract investment. This is exactly the type of thing we at TDV have been predicting for years. As the Western nations with their ever-growing governments and government liabilities look to steal greater amounts of money to forestall their inevitable collapse, individuals are fleeing beyond the borders to live where their capital will be treated better.
In Puerto Rico alone, besides the ten wealthy US subjects who have already relocated, another 40 are in talks with the government about a similar move. 14 of those are hedge fund managers and one, Pascal Forest, has already set up his firm, Forest Investments LLC, in the Puerto Rican capital of San Juan.
Soon this trickle of the wealthy to Latin America and other places like Southeast Asia will become a flood. As capital flees, governments will make it more difficult to leave. It's already baked in the cake. Expect currency controls and even restrictions on foreign travel. Thugs like Senator Charles Schumer are already introducing bills to strip those fleeing taxes of US citizenship (presumably so the expatriates can be assassinated via drone without any legal complications). Not to sound too dramatic here, but it's only a matter of time before the cameras along the US border are turned inward to keep in the hordes of people who will be trying to leave.
"Ooh, Paulson, trying to keep what you earned...
We're gonna drone you so hard...!"
Get Yourself And Your Money Out While You Can
You don't have to be a billionaire, or even a millionaire, to be worried. Anyone with a decent amount of assets -- anything over a few hundred thousand dollars -- should be looking to get a second passport right now.
And even if you don't have a ton of money, we offer monthly payment plans to get passports in other much, much friendlier tax farms like Paraguay and the Domincan Republic. You can get more information on pricing for those plans from our agents. Start by clicking here. We're the only ones doing this. Why? Because it is dangerous to be right when the government is wrong. And we just will not bow down to tyranny.
It is far, far better to start the process now than wait any longer. The governments of the West could not make it any clearer. They are going to squeeze every penny they can out of their prey before the whole things comes tumbling down. Get your precious metals outside of the geographical region wherein an armed group of robbers claim to own you. And, start protecting yourself from these thieves right now before it's too late.
Source: Dollar Vigilante
