The hypocrisy and stupidity of politicians is unbounded. Leading the pack in both of these categories is the easily despised Chuck Schumer, senator from NY. His attack on the Facebook founder and the threats he made about passing legislation that would never let him back in the country meets new levels of idiocy, even for Mr. Schumer. In his mind (or what passes for one), successful people should be punished severely. If they react in a manner to protect themselves, then up the punishment ante until they finally succumb to the political will.
This attitude is typical of Statists. They see only their view of how the world should work and want everyone to conform to it. That is why central planning requires force and coercion. The more complete the control, the more atrocities are committed in the name of the State. Everyone must be made to obey the details contained in the central plan, whether it makes sense or not. Whether they agree or not. We must do it for the State!
Think about the message conveyed by this latest Schumerism. What does it say to anyone with capital or talent? It says that if you become successful, we want whatever we are able to extract from you. It is just another reminder of why I have suggested that anyone under forty with a modicum of talent leave the country if Obama is re-elected. Let me rephrase that advice: leave the country even if Obama is defeated and the election is at all close.
By all rational considerations, Obama should lose in a landslide. If it is close, it means the number of stupid voters almost outnumber the non-stupids. That itself is a sign the country is gone! Someone just as bad (and just as unknown) will eventually replace Obama if the electorate is that far gone. If so, get out now!
Now back to Schumer’s stupidity. Just the thought that something like this could happen in the US will tilt the balance to more stupid voters. Some producers read the handwriting on the wall and are already moving their real capital out of the country. US businesses are not expanding domestically but are internationally. Much of that is related to business reasons, but some of it undoubtedly takes into account the deteriorating attitude toward producers in this country. Some human capital has already left. This last year represented the largest number of American renouncing their citizenship ever.
All of this further shifts the balance in favor of takers versus the makers. Worse, it sends clear signals to outsiders with talent and capital to not come here. Build your plant somewhere else where there may be less of a chance of it being held hostage by a hostile government.
Bill Bonner has an article that puts Mr. Schumer’s idea into proper perspective, both with respect to common sense and long-accepted legal principles:
… one of Facebook’s founders has moved to Singapore. He will save, by one estimate, $67 million in taxes by giving up his US citizenship. He says that’s not the reason he gave it up. But you can believe what you want.
And now the politicos are up in arms. Mr. Saverin has helped to give them an asset worth about $100 billion. Are they grateful? Do they bend down and kiss his derriere?
No! They want to tax him even more heavily…and prevent him from ever setting foot in the US again.
Yes, dear reader, there is no thought so dumb…so short-sighted…so low…that it won’t become the law of the land.