Tag: fleeing millionaires

A Tipping Point

An awful lot of bandwidth eaten up of late, all on taxes and the economy. For my own self, I’ve skipped over most of it, the intransigence is set and no minds are going to change. But for those folks that can’t be convinced of the simple fact that taxes can change behavior, work production and/or place of residence to avoid them, lets look at Britain;

Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.

A 60 plus percent drop in those willing to get fleeced, not an insignificant number.

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.

Wait, that can’t be right, who could possibly believe that lowering the tax rate increases tax revenues, and vice versa? What a crazy notion.

But here is the soup bone quote;

or took steps to avoid paying the new levy by reducing their taxable incomes.

And how exactly did they reduce their taxable incomes? Did they take more lawful deductions? Doubtful, rich folks usually take every legal deduction no matter what their tax rate is. Did they just not file? Hard to enjoy your wealth in the clink, don’t think so. Did they sell their business, pay off the cap gain tax when it was low, and now are just living off their dividends ala tax cheat Warren Buffet? Or, did they weigh the work involved with the taxes owed and just said , “Screw this, I will work less, make less money (thus owing less tax, less tax revenue to the state) and they can blow me”?

Oh, and it’s happening across the Channel as well. You think Obama is paying attention, you think he is aware that rich folks are bailing America under his polices and high taxation? Rich folks will be less willing to start businesses. Obama’s proposed tax increase will also act as a major disincentive for foreign entrepreneurs to invest in the US economy, build businesses and create jobs.

It is interesting to see Britain try to undo the damage by lowering their top rate (just the opposite of what Obama wants), it might work, for some. Finding that tipping point, where the actual producers and job creators are willing to stay, vs. punitive taxation which will drive them away, thus removing the one percent, that makes 17 percent, yet pays 37 percent of all the taxes. You would think they would be nicer to those that actually pay the bills.