The effect isn’t restricted to rich people investment, but it affects it very directly, whereas tariffs affect only consumption costs directly. Investors prefer tariffs to capital controls. Ask them. 1/

A foreign payouts tax would affect the relative pricing of domestic vs foreign goods, but less than a tariff, because a large part of gross trade flows offset. Tariffs tax the gross trade flows, both sides if there’s retaliation. 2/

A foreign payouts tax affects only net flows, affects prices less and targets only what we mean to discourage — overall (not bilateral) imbalance. /fin