Quora Answer: Where Do Most of the World’s Super Rich Live & Why is It Not in the US?

The following is my answer to a Quora question: “Where do most of the world’s super rich live, and why is it not in the US?”

I assume you mean the ultra-wealthy, those with a net worth of US$30 million and above.  Most of these people are domiciled in developed countries, and that includes the US.  What you really mean to ask is where their money is kept.  Countries such as Singapore, Luxembourg, and Monaco come to mind.  The main reason is taxation.  For example, Singapore has neither a capital gains, nor an inheritance tax.  This is in contrast to many other countries in the world, even the United States.  Most of these people have their funds in trusts and companies, owned by other entities in several layers removed from them.

There are many problems with the American tax system for example, and such is the structure of government, it is almost impossible to actually reform.  Whilst it is unpopular, the tax regime should consider moving away from a wealth tax model to a consumption tax model.  In the former, people are penalised simply because they have more.  This simply pushes money overseas.  In the latter, people are taxed according to their consumption, which is more equitable.  The one who uses the road more should pay more than the one who uses it less, for example.  The wealthy will always pay more consumption tax, because they can hide their money elsewhere, but they still need to live their lives of privilege, to eat, to drink, to consume.