- Aug 16, 2007
That's not totally true, but they generally don't pay a lot of income tax regardless where in the world you look.Many of the people who make hundreds of millions of dollars each year pay no tax at all.
People with incomes of over, say $10M a year, usually have the option of (fiscally) moving to another country. There are countries that don't have income tax at all, some with a maximum amount in dollars, not percents, and such.
Sometimes countries with generally high income tax make loopholes available for these people to pay very little tax, because they know they will otherwise move and pay no tax (to that country) at all.
You could say good riddance if they leave, but that isn't overly wise: While they pay little in income taxes, they still pay VAT on everything they buy, pay muncipality taxes, road taxes, cigarette and alcohol taxes and what have you.
Someone that makes $10M a year, pays no income tax at all, but does spend that money will yield the state considerably more that someone that makes $100k a year and pays full income tax over that.