RSSTwo Thirds of Millionaires Go Missing in England to Avoid the 50% Tax Rate Hike
One might think that the United States would learn from what happened across the Pond.
So President Barack Obama and the Left think that raising taxes n the so-called rich is the answer, eh? Take a good look what happened when the British PM raised taxes on millionaires. Two-thirds of millionaires either left the UK or reduced their taxable income in order to avoid the 50% take rate. The British naively thought they were going to increase revenues by merely increasing the tax rate on millionaires and doing simple math. However, instead of raising funds, it actually cost the UK £7 billion in lost tax revenue.
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.
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.
Think Barack Obama and Democrats could learn from this? Hell no, Obama and Democrats can’t even learn from the government overspending and entitlement program fiasco going on in Greece. Instead Obama continues his class warfare and puts forward the myth that taxing the so-called rich is the answer to all of America’s fiscal ills.
Posted December 1, 2012 by Scared Monkeys Barack Obama, Class Warfare, Democrats, Divider in Chief, Economy, Liberals, Tax & Spend Liberals, Taxes, WTF | 9 comments |
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9 Responses to “Two Thirds of Millionaires Go Missing in England to Avoid the 50% Tax Rate Hike”
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Obama is a socialist ideaolog. He will never change his position. He wants a utopia where he is in charge. The destruction of our constitutional government is his aim.
The House of Represenatives is the peoples house and they control all items of expenditure. The only way out is for the House to shut down the government by defunding all programs except social security and a portion of the military.
Yes, but we now now have FATCA as of Jan 1 2013 .
The US IRS will be able to attach foreign American Bank Acounts …. so far 50 countries have signed mutal disclosure agreements.
Obama signed into law 2010
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SM:Not when you leave the country, ie give up citizenship. BTW, how would you know some one has a foreign bank acct if it is not provided?
US citizenship relinquishment is up 700% as of 2011
http://immigration.about.com/od/immigrationlawandpolicy/a/Renunciation-Of-U-S-Citizenship.htm
Stats of renunciation : 2008 -2011
2008: 235
2009: 740
2010: 1,485
2011: 1,781
Over 700% increase
Foreign banks are REQUIRED to disclose to the US IRS all American account holders or face a 30% witholding tax on their US investments.
http://www.irs.gov/Businesses/Corporations/Foreign-Account-Tax-Compliance-Act-(FATCA)
Foreign banks have enterered into this IRS agreement with the idea the US will act in kind by disclosing all of their respective US account holders.
The Fall Out:
http://www.bloomberg.com/news/2012-05-08/u-s-millionaires-told-go-away-as-tax-evasion-rule-looms.html#xdm_e=http%3A%2F%2Fwww.bloomberg.com&xdm_c=default6447&xdm_p=1&
This Summer the Miami Hearld printed an article discussing the Columbian millions fleeing South Miami Banks in preparation for FATCA
The Miami bankers contacted our state senator concerned that the South Florida banks would fail as that foreign money was required for capitalization needs .
The article was on-line but apparently no longer.
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SM: Not if you are no longer a US citizen is my point. Many that will leave will find citizenship elsewhere.
Relinquishment penalties – loss of medicare & SSA benefits -possibly any reentry into the US.
Its an exteme position requiring some wealth
From what I’ve read aquiring foreign citizenenship/ passports without the benefit of marriage is costly and takes quite some time. Other countries are not so hip to the motto of “Give me your tired, hungry and poor…”
FATCA wants 193 countries to comply to the IRS strongarm . 50 counties have signed
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SM: LOL, if you are worth $100 million or make 10′s of millions a year do you really think you would care about $1800 a month SS check or medicare benefits? Really, come on.
Citizenship elsewhere may not be the panacea, ie France just raised their tax rate without cutting public spending .. so it reads
http://www.huffingtonpost.com/2012/09/28/france-tax-rich-rate_n_1922089.html
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SM: What would you expect from a socialist government?
BBC NEWS
France budget: Taxes favoured over spending cuts
http://www.bbc.co.uk/news/world-europe-19754016
Uhm… the word on the street is that wealthy Brits are escaping to FRANCE.
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SM: Let’s hope not with France raising taxes thru the roof.
We’ve heard that London, particularly about East London, that if someone blindfolded and walked you down a city street – the sounds and smells would convince you that you are in BAGHDAD!
And Britain’s ‘hand-wringing accomodation’ of the whole ‘Shariah-thang’ are frustrating traditional Brits to the extent that they hop for the first exit to France as fast as they can!
Sadly, the existing Brits are NOT the tough dudes who stood up to Nazi aggression!!
Yes SM
The loss of SSA & Medicare no big deal to a multi millionaire, but the threshold for tax evasion is 2 million, not so much. Still, in principle benefits they paid into. But to sweeten the punishment no re entry into the US!!
“Current law says that a person who renounces his U.S. citizenship for the purpose of avoiding taxes can be barred from re-entering the country”
Tax consequences
http://www.taxmeless.com/USCitizenRenounce.htm
Democrats New bill to punish face book founder
http://www.cbsnews.com/8301-503544_162-57436316-503544/dem-senators-introduce-bill-to-punish-facebook-co-founder-eduardo-saverin/
Under Schumer and Casey’s bill, if an American with a net worth of $2 MILLION or a tax liability of $148,000 renounces his or her citizenship, the IRS will presume that person is moving in order to avoid paying taxes. The person in question will be responsible for proving otherwise.
These politician all have net worths over 2 mil and foreign investment accounts- not illegal, but they protray them as such to the larger, naive public.
Its just gross.
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SM: Yea, this will pass in court. Big Brother does not get to assume. As I stated, those who are millionaires could care less about the paltry SS checks especially when it now seems that it will be means tested meaning they paid into the fund under one condition and will be reimbursed under another because they are the evil rich.
Millionaires have invested in 401k’s and other things for their future. Trust me, no one should be counting on SS as their retirement. It was never intended to be that. Sadly, too many people do nothing to prepare for their future.