Britain’s millionaire exodus is a wake-up call to Barack Obama’s high tax America

November 28, 2012

Millionaires and their wealth are not just fleeing Hollande's France, with its new 90 percent top rate tax. They've also been escaping Britain's 50 percent tax too. As The Telegraph's Robert Winnett reported earlier today, "almost two-thirds of the country's million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax."

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.

Since George Osborne announced a reduction of the top rate to 45 percent in his April budget "the number of people declaring annual incomes of more than £1 million has risen to 10,000." This is a figure still significantly below earlier levels, and it will be a huge challenge for Britain to recover its lost wealth. As Conservative MP Harriet Baldwin puts it, "Labour's ideological tax hike led to a tax cull of millionaires," costing the UK around £7 billion in lost tax revenue.

There are important lessons here for the White House, and the figures coming from the UK should be a wake-up call for President Obama, who has pledged to force "the wealthiest Americans to pay a little more in taxes." Specifically, Obama wants to raise the top rate tax in the United States for those earning $250,000 a year or above by nearly five percentage points, from 35 percent to 39.6 percent (which may rise as high as 43.4 percent according to Jennifer Rubin at The Washington Post). Compare this to the current top marginal individual income tax rate in Singapore of 20 percent, and Hong Kong at 15 percent.

FINISH


blog comments powered by Disqus

Who's right: Donald Trump or Macy's?

 

mexico trump_macys_2015

Macy's has removed Donald Trump's products from their shelves because, while he stated that some of the Mexican people crossing our borders illegally are good people, some are murderers and rapists. While a true statement, it is not a "politically correct" statement, so Macy's has decided to pull his products from their shelves.

As a result of this, will you shop less - or not at all - in Macy's stores in the future?






10 year FSM Anniversary

Oregon's Minister of Thoughtcrime orders bakery to pay $135,000 to 'mentally raped' lesbian couple, stay silent about beliefs

July 02, 2015  11:53 PM

Bakery owners ordered not to talk about their reasons for refusing to make a cake for a lesbian wedding.

Rep. Alan Grayson declares it's time to stop fiddling while black churches (accidentally) burn

July 02, 2015  09:51 PM

When is the government going to get serious about racist lightning strikes?

Government assigns Independence Day homework: Hassle your Uncle Ted about Obamacare

July 02, 2015  07:02 PM

Great advice from the federal government: "You should be prepared when Aunt Janine says something like, 'Obamacare hasn't helped anyone!'"

Lie of the Year winner cautions: Candidates 'are going to be making a lot of stuff up'

July 02, 2015  05:19 PM

This bit of advice brought to you by the winner of PolitiFact's Lie of the Year award.

Chairman of House Dems asks people to 'keep tabs' on companies silent about Trump

July 02, 2015  04:59 PM

Rep. Becerra seeing to it that there's hell toupée for The Donald.

FSM Archives

More in PUBLICATIONS ( 1 OF 25 ARTICLES )