Wednesday, November 28, 2012

2/3 British Millionaires Disappear After 50% Income Tax Announced

If you want less of something, tax it more. So it is with millionaires.
From the Daily Telegraph (here):
the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.

This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.

 As we learned from Measures 66 and 67 in Oregon, the more you tax of something or someone, the less of it you're likely to get. Eleven percenters moved out of state and took their businesses with them. Two of them are my neighbors. They don't write press releases or send up flares to announce their leave-taking, they just do it.  Because of the upcoming Obama tax increase bonanza, I've learned of two other retired couples moving offshore.

And if Maryland, Oregon, and New Jersey's experiences weren't convincing enough, we now have Britain's. Again. 
Last night, Harriet Baldwin, the Conservative MP who uncovered the latest figures, said: “Labour’s ideological tax hike led to a tax cull of millionaires.
Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.[emph added]
“Labour now needs to admit that their policies resulted in millionaires paying less tax and come clean about whether they would reintroduce this failed policy if they were in power.” 
The Labour Party was also agitating for a "mansion tax." Apparently paying property and all other attendant taxes for a larger property isn't enough--you have to add a success tax to make people feel properly bad for working hard and making lots of money.

And finally a PS:
George Osborne, the Chancellor, announced in the Budget earlier this year that the 50p top rate will be reduced to 45p from next April. Since the announcement, the number of people declaring annual incomes of more than £1 million has risen to 10,000.[emph added]

Taxes have consequences. It's time for the left's argument that higher taxes necessarily result in higher revenues to be put away for good. The Reagan tax cuts proved it. The Bush tax cuts proved it. And the experiences of the above mentioned states and countries prove it.


1 comment:

  1. Wealthy French are leaving France to escape the proposed 75% top tax rate to take effect in 2013.