Results trickling in for U.K.'s 50% tax on wealthy

[DFWAg]

Interesting and (to me at least) not very surprising real world results that from one of the more noticeable tax hikes on the wealthy.

The Link

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[LongJohn]

Politicians continue with the same flawed thinking, regardless of which side of the pond they're on. They assume everything stays constant after they raise taxes on the wealthy.

I've mentioned this example before but our congress tried to soak the rich by levying a luxury tax on items over $100K back in the late '80s. The only thing it accomplished was the near destruction of the boat industry and put a lot of blue collar boat builders out of work. Exactly the opposite effect than intended.

The rich aren't stupid. They won't just sit around while the government fleeces them. It's a stupid proposal every single time it is brought up.

 

[mop]

this is fascinating to me. I appreciate you linking to this. Crazy how the reality of higher taxes on the rich is ignored in favor of politicking.

 

[Statalyzer]

But, but, but taxes result in money being paid to the government, so higher taxes therefore must equal more government income! It's so simplistic that it can't possibly be wrong!

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[Leftwith]

Shocking.

 

[DFWAg]

One of the real disconnects I have observed between the average American and the average Brit or European citizen is the relative emotional allegiance each group has to its birth country.

It really colors the Average Joe's perception of the applicability of certain government policies. My time in London and my subsequent career travelling overseas has provided me a thousand examples of Brits or Spanish or others happily chucking their citizenship to move to a more favorable environment, be it Australia or Portugal or Dubai or wherever else.

I don't think the Average Joe in the States has enough of an appreciation of how easily capital and people can flow out of the United States if the environment becomes less attractive than other places around the world.

Hopefully we can change the conversation from hating on the rich and certain industries and instead get back to fostering a personal and business climate that makes people want to leave their homelands and become U.S. Citizens. That is what makes us great . . . .not the class warfare rhetoric I see flowing from Washington.

 

[UTChE96]

Thanks for the article. Great thread.

This is not surprising in the least. When I travel overseas, I run into many brits who stay out of country for much of the year simply to avoid the taxes. Some have bought homes in Spain or Cyprus with the tax savings. Its amazing how shallow the thinking of liberals can be on tax policy. Give your highest earners incentives to leave the country. Brilliant!