David Rosenberg: ‘Class Warfare Coming Your Way’

In his latest piece David Rosenberg stresses the intensifying tendencies in our society of conflict of interests between social and economic classes heading our way. He points out toward the growing trend of Americans executives seeking their fortunes abroad.

Class Warfare Coming Your Way

“We have to admit that we cannot recall a time when the potential returns in Canada looked so attractive compared to the U.S. while the risks are so much lower — fiscal, economic, financial and political.

Now we see that Senate Majority Leader Harry Reid is planning a slate of tax rate
hikes on the upper class (defined to mean anyone making over $250k) — like a
medical payroll tax on high-income earners (a $50 billion drag on purchasing
power for this group) not to mention the $460 billion confiscation being planned
as part of a new 5.4 percentage point surtax (high-income earners in Ontario will
recall those from the early 1990s). No wonder immigration into Canada is running
at a 4% annual rate and foreign applications at Canadian universities surging at a
7% annual rate at this time — the reverse brain-drain is in.

The state governments are already moving in to tap the “rich” as a source of
revenue mimicking the 10.55% surtax that California levels on anyone making
over a million bucks. Hawaii has enacted an 11% top rate on those earning over
$250,000. New Jersey has brought in a 10.75% rate on those making over $1
million too. As state after state follows suit, we’ve got news for you — Canada is
looking more and more attractive each passing day. See States Grab ‘Millionaire’s
Tax’ on page B2 of the weekend WSJ.

Also have a look at today’s USA Today at the growing trend of Americans seeking
their fortunes elsewhere — this is new! Fifty-four percent of executives said they
would be likely, or highly likely, to accept a foreign post, according to a survey of 114 executives by talent management company Korn/Ferry. Just 37% of those
surveyed in 2005 said they’d go abroad. At MIT’s Sloan School of Management,
24% of 2009 graduates got jobs overseas, up from 19% last year.” [emphasis added] [h/t businessinsider]

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