Expiring the Tax Cuts Would Cause Investor Movement Abroad  As mentioned in the previous arguments, the expiration of Bush tax cuts would firstly cause investors and people in the upper brackets to resort to tax avoidance methods, such as placing money in foreign accounts and using legal lacunae to reduce their tax liability.  However in a world where the upper management of most businesses can be handled from other countries, it is prudent for those facing higher taxes in the U.S. to move away to avoid them. Most countries in the U.A.E, for example, have incredibly low tax rates for the entire population.  The reason that many American taxpayers in upper brackets have not moved away to take advantage of this is because the tax cuts and the Republican government have kept them satisfied enough that there is no reason to go through the inconvenience of moving.  The removal of the tax cuts could easily provide this impetus owing to the fact that they might result in further higher taxes for the rich down the line. As such, tax increases of this nature could cause the rich to leave the country and cease paying tax altogether. [1]  [1] Bruner, John, “Where America’s Money is Moving,” Forbes, 14/06/2010