re: Can reductions in capital gains taxes cause capital flight?

Historically reductions in the capital gains rates have triggered people to sell capital assets and redeploy their capital to new investments that they perceive will have better returns than the assets sold. The reductions in capital gains rates make domestic investment opportunities more attractive. The rresultant redeployment of capital often results in rapid economic growth as many of the new investments provided the necessary capital for business expansion and new business development. And th

Americans have historically not moved their capital overseas due to repatriation issues, and they perceived domestic investment opportunities were superior. Reducing the capital gains rate makes the domestic investment opportunities even more attractive. So it is unlikely that reducing capital gains rates will result in capital flight.