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For years, the United Kingdom attracted the world's wealthiest people. The system was brilliant in its simplicity: for a low negotiated cost, the individual and their family could live tax-free in the UK. The former owner of Harrods, Al-Fayed, reportedly paid 100k GBP yearly, regardless of income. Remember that he was an Egyptian and could have chosen to live anywhere. But thanks to this offer, he moved to the UK - and enriched the country as a result.
There were variations on this theme, but the underlying appeal was huge: move to the UK as a Non-Dom (Non-Domiciled for tax purposes), and pay no taxes (at least on non-UK income). The end result was decades of economic growth, an absolutely bonkers housing market, and ongoing foreign investment into houses, cars, sports teams, and luxury goods of all kinds. Not to mention investment in businesses (like Harrods). Everyone could be a winner - except the countries the rich were fleeing. (The UK has now abolished this system.)
The Gold Card idea is an improvement on the Non-Dom status, because the Gold Card is not about gaining citizenship, not at all! Instead, the Gold Card gives the payer of $5 million (there are perhaps 3-5 million people in the world who could afford it) the right to live in the United States tax-free. They do not choose citizenship, because they have all the benefits without being subject to US taxes! (US citizens pay tax on global income, but Gold Card holders would owe no US taxes on personal income.)
And, of course, when Gold Card holders buy houses and cars and luxury goods, the US benefits. And when they start businesses here and employ people (as rich people naturally do), the benefits accrue to all of America, including business taxes and income from the companies - in addition to the valuable goods and services that business provides.
I love it. America will benefit enormously. So will the Gold Card holders. If 1 million people convert, that is $5 trillion into the treasury - plus all the follow-on benefits from having the very best kind of immigrants: hard-working, long-term planning, wealthy and inclined to investment.
Where it gets even more interesting is if America's wealthy start agitating for a similar option for American Citizens. As has already been seen, other countries are more than happy to sell citizenship (and no taxation) to wealthy Americans. The net result is a competitive environment to attract and keep wealthy people. The more competition there is, the better!
But the underlying Gold Card idea is brilliant and can help usher in a new Golden Age for America's economy and society.
Discussion (7)
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Seems to me terrorist groups or hostile nations could scrape up enough money to buy a legal, permanent foothold in this country. I assume there would be strict requirements for buying such a card . . .
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Remember that bit about bonkers real estate markets?
Have you ever read articles about how rich
Chinesehonourable foreign guests in Canuckistan have driven real estate prices out of the reach of native-born Canuckistanis?I'm just saying...
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Buyers must pass background checks and be vetted. Apparently over 1,000 have already been sold.
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We have to have less regulation on housing anyway. Housing should not be expensive for regulatory reasons (though it is).
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A further explanation of the Canuckistani case: It's illegal for Chinese citizens to move their liquid assets out of China, but it's not illegal for them to buy investments in other countries.
So, those that want to protect their wealth from confiscation by Beijing started buying up real estate in Vancouver and Toronto and then never living there. So, real estate prices skyrocketed and there have been stories multi-million dollar condos sitting empty in the middle of a housing crisis (although many of 'em do rent the properties out, thereby earning Western currency that Beijing can't confiscate).
I used to be pretty sympathetic with such folk. After all, I fully support Chinese citizens finding a way to stick it to the kleptocrats in Beijing.
However, now that it has come out just how many of these folk are fully loyal to Beijing and use their Canuckistani real estate income to donate to Beijing-friendly Trudeaupian politicians, my sympathy has been greatly strained.
Lesson: Opening up your real estate market to wealthy folk from countries whose loyalty to the USA is "questionable" might not be a brilliant move. Rich folk from despotic countries tend to be rich because they're friends with the despots.
ON THE OTHER HAND
They'll probably mostly buy real estate on the west coast, and who cares what happens to those states?
;-)
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