Once again, reality has made an abject spectacle of popular statist’s fantasies about “class warfare” or “soak the rich” tax policies where tax rates are seen as having linear effects on tax revenues.
The axiom “if you tax something, you get less of it” seems to have been proven valid anew.
In Britain, 2/3 of millionaires swiftly vanished (or in just a year!) in the face of 50% tax rate increase.
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…Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.