Two 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.