The Myth Rich People Want You to Believe
In this monologue Ramit Sethi debunks the widely‑circulated myth that a modest tax increase on the ultra‑wealthy would make them pack up and leave the country. He points out that if the myth were true, the world’s billionaires would be flocking to low‑tax states like Wyoming, yet they overwhelmingly reside in major urban centers such as New York City, Los Angeles, and San Francisco. Sethi cites the book The Myth of Millionaire Tax Flight, which provides data showing that the ultra‑wealthy actually move far less than middle‑class and low‑income households. He explains that the primary drivers of mobility differ: lower‑income people move for jobs and are generally younger, while the wealthy are older, have deep community and business roots, and value the cultural, professional, and lifestyle amenities of big cities. Consequently, an extra $55,000 in annual taxes is insufficient to motivate relocation.
