It’s a hypothetical question of course…but one worth considering. After all, many people move to Florida when they retire to avoid state income taxes, but will federal tax rates ever reach the point where people actually decide to pack up and leave the country?
As I write this the current US deficit is $13,734,305,801,350.45.
That’s close to 14 billion dollars…and growing. If you divided that equally across the estimated population of the United States, each of us would owe over $44,000!
Now there are all sorts of stories on the news about tax increases, the reduction of Social Security benefits, and various spending cuts to get our budgets in line (I think all politicians should have to take a class on how to budget). So basically we’re looking at a situation where we could be spending more and getting less in return. That’s not exactly a formula for success and contentment.
But what are the alternatives? We can’t just continue digging ourselves deeper and deeper into debt can we?
Would you ever consider moving to another country to avoid taxes? How much would taxes have to increase before you start researching various tax rates by country to find a new place to live?
And where would you go? My wife has family in Italy and I’ve always wanted to visit, but I’m not sure I’d want to up and move. What about you?