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Ramit Sethi Says He's Rich and Trickle-Down Economics Is a Lie

MarketDash Editorial Team
10 days ago
Personal finance expert Ramit Sethi pushed back hard on Peter Schiff's claim that cutting taxes on the wealthy helps the poor, calling it a debunked myth. Sethi, who says he's rich and lives in high-tax states, argues that tax cuts don't create jobs—only demand does—and that the wealthy won't actually flee when rates go up.

Personal finance expert Ramit Sethi has a message about tax policy, and he's not holding back: the idea that cutting taxes on the wealthy helps the poor is nonsense, and he should know—he's one of the rich people who would benefit.

Sethi's comments came in response to a post from economist and gold investor Peter Schiff, who argued that "if you want to help the poor, then lower taxes on the rich." Schiff's reasoning was that the poor benefit most from a productive economy that increases the supply and affordability of goods and services while generating more job opportunities.

Why Tax Cuts Don't Create Jobs

"I'm rich & this is a lie," Sethi fired back on X. "When politicians lower my taxes, I don't create additional jobs (only demand does that). I simply save that money."

It's a straightforward rebuttal to the theory often called trickle-down economics—the notion that tax breaks for the wealthy eventually benefit everyone as that money flows through the economy. Sethi says the data doesn't support it. "Trickle-down economics has been repeatedly debunked yet conservatives lie to you so they can give their wealthy overlords more tax cuts," he wrote.

Sethi also tackled another popular talking point: that raising taxes on the rich will cause them to pack up and move to states with lower tax burdens. "Despite what many people think, wealthy Americans don't actually move when taxes go up," he said.

The Myth That Rich People Will Leave

In a video accompanying his post, Sethi got even more direct about the relocation argument.

"You think I want to move to a red state so I can save $15,000 on taxes? F*** no," he said. "There's this myth in America that if you raise taxes on the wealthy, they will move and therefore you can't raise taxes. Are you seriously still buying this b*******?"

According to Sethi, the threat of wealthy flight is a deliberate strategy to keep tax rates low. "This is exactly what I would do if I were a wealthy person trying to prevent taxes from being raised on me. I would start a lie that says you can't do that because otherwise all these rich people will leave."

To back up his argument, Sethi pointed to his own choices. "I'm rich and I live in two of the highest tax states in America. California and New York."

He explained that high earners often stay in those places because they want access to better services, larger talent pools, and proximity to businesses they own or work with. The tax savings from moving just don't outweigh those benefits.

A Call for Higher Taxes on the Wealthy

Sethi went further, arguing that federal tax rates for the wealthy remain historically low and should be increased. "So this entire line of reasoning, 'if you raise taxes on the wealthy, we'll leave,' is a complete lie," he said. "So please don't let this myth continue."

He concluded with a clear statement about his own tax burden. "My taxes should go up because they are historically low and we should be supporting the poor and middle class in America, not giving massive giveaways to people like me."

It's an unusual position for someone who stands to lose money from higher rates, but Sethi's argument is that the broader economy benefits more from supporting lower-income Americans than from giving additional breaks to people who are already wealthy. Whether that shifts the debate remains to be seen, but it's a perspective that comes with the credibility of personal experience.

Back to News

Ramit Sethi Says He's Rich and Trickle-Down Economics Is a Lie

MarketDash Editorial Team
10 days ago
Personal finance expert Ramit Sethi pushed back hard on Peter Schiff's claim that cutting taxes on the wealthy helps the poor, calling it a debunked myth. Sethi, who says he's rich and lives in high-tax states, argues that tax cuts don't create jobs—only demand does—and that the wealthy won't actually flee when rates go up.

Personal finance expert Ramit Sethi has a message about tax policy, and he's not holding back: the idea that cutting taxes on the wealthy helps the poor is nonsense, and he should know—he's one of the rich people who would benefit.

Sethi's comments came in response to a post from economist and gold investor Peter Schiff, who argued that "if you want to help the poor, then lower taxes on the rich." Schiff's reasoning was that the poor benefit most from a productive economy that increases the supply and affordability of goods and services while generating more job opportunities.

Why Tax Cuts Don't Create Jobs

"I'm rich & this is a lie," Sethi fired back on X. "When politicians lower my taxes, I don't create additional jobs (only demand does that). I simply save that money."

It's a straightforward rebuttal to the theory often called trickle-down economics—the notion that tax breaks for the wealthy eventually benefit everyone as that money flows through the economy. Sethi says the data doesn't support it. "Trickle-down economics has been repeatedly debunked yet conservatives lie to you so they can give their wealthy overlords more tax cuts," he wrote.

Sethi also tackled another popular talking point: that raising taxes on the rich will cause them to pack up and move to states with lower tax burdens. "Despite what many people think, wealthy Americans don't actually move when taxes go up," he said.

The Myth That Rich People Will Leave

In a video accompanying his post, Sethi got even more direct about the relocation argument.

"You think I want to move to a red state so I can save $15,000 on taxes? F*** no," he said. "There's this myth in America that if you raise taxes on the wealthy, they will move and therefore you can't raise taxes. Are you seriously still buying this b*******?"

According to Sethi, the threat of wealthy flight is a deliberate strategy to keep tax rates low. "This is exactly what I would do if I were a wealthy person trying to prevent taxes from being raised on me. I would start a lie that says you can't do that because otherwise all these rich people will leave."

To back up his argument, Sethi pointed to his own choices. "I'm rich and I live in two of the highest tax states in America. California and New York."

He explained that high earners often stay in those places because they want access to better services, larger talent pools, and proximity to businesses they own or work with. The tax savings from moving just don't outweigh those benefits.

A Call for Higher Taxes on the Wealthy

Sethi went further, arguing that federal tax rates for the wealthy remain historically low and should be increased. "So this entire line of reasoning, 'if you raise taxes on the wealthy, we'll leave,' is a complete lie," he said. "So please don't let this myth continue."

He concluded with a clear statement about his own tax burden. "My taxes should go up because they are historically low and we should be supporting the poor and middle class in America, not giving massive giveaways to people like me."

It's an unusual position for someone who stands to lose money from higher rates, but Sethi's argument is that the broader economy benefits more from supporting lower-income Americans than from giving additional breaks to people who are already wealthy. Whether that shifts the debate remains to be seen, but it's a perspective that comes with the credibility of personal experience.