Politics
Dalio says capital controls and retroactive rules are used when wealth flees
Diary of a CEO
Ray Dalio: I Predicted The 2008 CRASH, I Know What Comes Next
"Then you change the laws so that you make them retroactive. In other words, you say the law means you're going to be taxed as of a past date so that if you leave, we're going to get your money. Or then you put in capital controls. All of this has happened before."
In a discussion about wealth taxes and whether high-net-worth individuals leave in response, Ray Dalio says governments historically respond with measures such as retroactive tax rules, exit taxes, and capital controls. He adds that wealth taxes can be administratively difficult because valuing illiquid assets is complex.
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Diary of a CEO