You assume a number that is too close to your floor. Duh, someone with $10.5 million would not care unless he expected his wealth to grow quickly, eh? My taxes under your scheme would be well into six figures, more than it takes to house and feed a upper middle-class family with room to spare. So yes, I'd leave for greener pastures, since my frugal lifestyle shouldn't be punished.

By the way, I already paid 25% capital gains tax when I sold my company I'd grown over the years, at the time it was easily 20% of my total wealth.