What to Do About America's Rich Who Use Offshore Tax Havens

After suggesting a couple of weeks ago that the stratospheric earnings of equity-fund managers ought to be considered income rather than capital gains and therefore taxed at 35 percent rather than 15 percent, I was deluged with emails telling me the plan wouldn't work. It would just drive fund managers into offshore tax havens. No less than Jon Corzine, the former chief executive of Goldman Sachs, now governor of New Jersey, admitted recently in a television interview that many fund managers would take their money out of the country before they'd pay the 35 percent rate.