The global business holdings are typically held in US accounts. Transactions from there are 100% traceable.
Overseas accounts in HK and Switzerland are being cracked down hard. (I mean if you want to break the law, you can always break the law...)
It's not that easy to move funds into tax haven without some risk (ex: whether your GRAT will actually pan out) or advance tax event. (The easiest way is to start businesses in a tax haven in the first place, which is different from moving capital once it has been created).
Great point about human capital. I would leave for Canada or Singapore under such a regime as well!
You can't stop people from leaving. Look at USSR, India or any other ex-socialist economy. Unless you turn your country into a kind of North Korea, these things can't be stopped. And even if you did turn your country into North Korea, the rich will likely be in the top party positions and do whatever is best for them.
Every other socialist economy has had this thing in the past to make it hard for people to leave. They don't work because you can't make people stay against their will.
Most countries have now learned this the hard way. On the longer time period you can only encourage people to do good work, you can't punish them into doing it.
Ah ok I think I get what you're saying better now. Once people decide they're leaving and never coming back, whatever rules you have in place are worthless since they're going to ignore your exit taxes or whatever since they're not coming back and they think your regime is illegitimate anyways.
Overseas accounts in HK and Switzerland are being cracked down hard. (I mean if you want to break the law, you can always break the law...)
It's not that easy to move funds into tax haven without some risk (ex: whether your GRAT will actually pan out) or advance tax event. (The easiest way is to start businesses in a tax haven in the first place, which is different from moving capital once it has been created).
Great point about human capital. I would leave for Canada or Singapore under such a regime as well!