I don't necessarily disagree with him but his analysis leaves out a very important point. In 1960 it wasn't really possible for rich person to live in a country like Singapore or Taiwan and still maintain relationships in the United States. That's no longer the case. With cheap flight travel, video chat, and other means of communication it's very easy for someone with the financial means to travel back and forth with very little effort. And countries like Singapore, Hong Kong, and Taiwan know this.

Given that fact it's in those countries best interest to woo rich Americans. Which means the United States now has to compete.

Meaning the US can't reasonably raise the tax rate on the top 1% higher than what it would cost them to fly back and forth from the United States if they made a place like Taiwan their own.