That’s not the only reason. Well to an extent it is, because the rich are much better at optimizing taxes, however you can close the “loopholes” and such, then there are wealth taxes.

The problem is that the rich are ultra mobile, just like their capital, so unless you restrict that they’ll just move somewhere else where taxes are low.

So countries basically end up competing with each other by lowering taxes to attract them while destroying their middle classes..

Same more or less applies to companies