Over in Britain, they have been trying to soak the rich for ever increasing taxes. How did that work out?
Two-thirds of millionaires left Britain to avoid 50p tax rate: "In 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.
The figures have been seized upon by the Conservatives to claim that increasing the highest rate of tax actually led to a loss in revenues for the Government.
It is believed that rich Britons moved abroad or took steps to avoid paying the new levy by reducing their taxable incomes.
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."
So to recap for those of you who actually believe that raising taxes on rich people leads to more revenue:
1. Britain raises the top tax rate to 50%
2. Ten thousand rich people fled Britain to avoid said tax increase
3. Lowering the rate to 45% either magically created four thousand rich people or the ones who fled ran the numbers and it made sense to come home again
4. The net loss of tax revenue was on the order of 7 billion pounds.
This is the same idiocy Chairman Zero has decided will work here somehow. If I were a younger man I'd be heading out for all those offshore tax havens that are about to see billions of dollars pouring in.Posted by Duffy at November 28, 2012 03:15 PM | TrackBack