Tax hike on millionaires actually cost the UK £7 billion

Norm Stansfield

私は亀が好きだ。
Mar 17, 2009
15,949
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#1
That's in government revenue alone, it doesn't count the loss of economic growth and job opportunities resulting from the exodus of high earners.

http://www.telegraph.co.uk/news/pol...aires-left-Britain-to-avoid-50p-tax-rate.html


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.

However, the number of million-pound earners is still far below the level recorded even at the height of the recession and financial crisis.

Last night, Harriet Baldwin, the Conservative MP who uncovered the latest figures, said: “Labour’s ideological tax hike led to a tax cull of millionaires.

Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.

“Labour now needs to admit that their policies resulted in millionaires paying less tax and come clean about whether they would reintroduce this failed policy if they were in power.”

Mr Osborne argued earlier this year that the 50p rate was deterring entrepreneurs from coming to Britain.

The Chancellor wanted to scrap the top rate altogether for those earning more than £150,000 a year – and return to the previous system of a basic and top rate of tax.

This was blocked by the Liberal Democrats without a new mansion tax being introduced.

Labour will hold a parliamentary debate today to criticise the decision to reduce the top rate, which Ed Miliband, the Labour leader, has described as a “tax cut for millionaires”.

Senior Coalition figures are locked in negotiations over next Wednesday’s Autumn Statement which will set out government tax policies for next year.

The Tories wish to freeze out-of-work benefits. The handouts usually rise in line with inflation, which has meant that the unemployed are likely to receive a higher rise than most workers can expect.

It is understood that the Lib Dems will only allow the benefits freeze if taxes on the rich are increased.

The Lib Dems have long cherished an increase in taxes for multi-million pound properties. David Cameron has ruled out changes to council tax.
 

d0uche_n0zzle

**Negative_Creep**
Sep 15, 2004
46,674
6,860
693
F.U.B.A.R
#2
Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman, yeah, I'm the taxman

Should five per cent appear too small
Be thankful I don't take it all
'Cause I'm the taxman, yeah I'm the taxman

If you drive a car, I'll tax the street,
If you try to sit, I'll tax your seat.
If you get too cold I'll tax the heat,
If you take a walk, I'll tax your feet.

Don't ask me what I want it for
If you don't want to pay some more
'Cause I'm the taxman, yeah, I'm the taxman

Now my advice for those who die
Declare the pennies on your eyes
'Cause I'm the taxman, yeah, I'm the taxman
And you're working for no one but me.
Silly Britards.
 

Norm Stansfield

私は亀が好きだ。
Mar 17, 2009
15,949
4,075
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#4
In other news, investors and corporations are preparing for the coming US tax hikes thusly:

http://www.cnbc.com/id/49993082

This article doesn't address the capital gains tax, but that is even more certain to result in loss of revenue. That's two major tax hikes Obama is hoping for new revenue out of, that are just not going to happen.

I have a feeling that in two years, this thread is going to be about the US, not stupid Britain.
 

mills

I'll give em a state, a state of unconsciousness
Jan 30, 2005
13,849
638
628
Flea Bottom
#5
(Wait was the wrestlefag song a parody of that one? I so do not care about the beatles.)
 

Ballbuster1

In The Danger Zone...
Wackbag Staff
Aug 26, 2002
102,873
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#6
I have a feeling that in two years, this thread is going to be about the US, not stupid Britain.
I would most certainly agree. If you have that kind of money then you
have the ability to move it or yourself around to avoid the taxes.
 

KRSOne

Registered User
Dec 8, 2011
12,967
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#7
Doesn't this already happen in the US? NY raises taxes and they predict they will receive 4 billion because of the new taxes but they always end up losing more. A lot of people just move to Florida. The Fabien socialists want to destroy the world economy and bring in pure socialism as the fix so you will have no place to run. Commies take over by military force, Socialists take over by propaganda and legislation.
 

OccupyWackbag

Registered User
Dec 12, 2011
3,416
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#8
Doesn't this already happen in the US? NY raises taxes and they predict they will receive 4 billion because of the new taxes but they always end up losing more. A lot of people just move to Florida. The Fabien socialists want to destroy the world economy and bring in pure socialism as the fix so you will have no place to run. Commies take over by military force, Socialists take over by propaganda and legislation.
I can't disagree with this.