Two-thirds of millionaires left Britain to avoid 50% tax rate
EmailImage:

2012 The Kiplinger Washington Editors, Inc.
Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50% top rate of tax, figures have disclosed. George Osborne, the Chancellor, announced in the Budget earlier this year that the 50p top rate will be reduced to 45p from next April.
By Robert Winnett, TELEGRAPH.CO.UK, Nov 28 2012

Will California or the Federal Government get a clue from this? Those with means have the means and motivation to move to tax friendly jurisdictions.

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.

www.Inedc.com

You might also have seen how the French actor Depardieu took Russian citizenship to escape the French tax rate.

Which was 75%, and politicians are calling him dramatic . . . .

I wonder what percentage it would take for the politicians to admit its not dramatic at all.

poor millionaires,,,,good thing money (especially millions) can pretty much afford the luxury of living in just about any country they wish,,,,

Millionaires who earned their wealth through honest means don't necessarily want to live in a place where they are punished for being financially successful through honest means.

People who covet the wealth possessed by such millionaires don't necessarily want fairness. Such people simply have a problem with coveting.

if they dont want to,, they dont have to,,,,ANYTHING

thats the beauty money buys people in the world where money means power,,,

So, your response to people earning wealth through honest means is to project something negative into their behavior.

you take that money buying power and power requiring responsibilty

as negative things?



people with money can move anywhere they want for any reason, whether its to escape dreary weather (and the UK does have dreary weather), bland food, lack of opportunities, desire for warm climates, desire for cold climates,, or any other reason

who knows why those millionaires left, who knows how many millionaires USUALLY leave,,,

but tis great that they have the option to pick up and do so,,,immigrating is not the easiest thing for those without means, especially not to places with high quality of life,,,

and its great those who remain accept the responsibility that extra power/authority usually warrants in life,,,

You make the assumption that people who earn wealth through honest means are going to buy power, as if they are going to do something that is dishonest.

Small-business owners who earned their wealth through honest means might actually invest their wealth into the creation of more jobs, resulting in the reduction of unemployment. Instead of "buying power", they put more people to work.

im not assuming anything at all

whether wealth is earned 'honestly' or not,, having it (especially to the point of being a millionaire/billionaire) gives one POWER in terms of their options and their privileges and authority over others

just like being in poverty whether through laziness or bad luck, causes people to loose their power in terms of options, privilges, and authority even over their own lives

those who create jobs have the 'power' to do so,,,,

The point of the article msharmony is not about what wealth provides, but how government can shoot itself in the foot through taxation.

Its a balance, and when out of balance this is the consequence. Not exactly rocket surgery.

Piont of this article is;
Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of tax increase.
Millions can afford to move anywhere they want whenever they want.
Money has Power in this World.

In other words, people tend to move in order to avoid being punished for being financially successful. That is what's currently happening in the state of California.

Yep, Mr David.

That's exactly what happened to our industry here. Taxation, EPA, over-priced labor.

Intelligence states, if I'm losing here, move my ASSests to where my buck gets a bigger bang.

Money=power=privildge=belief of being beyond (above, outside, not having to participate)what the "normal" have to do.

Which makes them take advantage of their power which is then called greed and corruption.

They are not being punished for their wealth, here, they are spoiled because of their wealth.

If they were paying a larger percentage of tax rate then the "normal" folks, then they could complain legitimately but they are not even getting close to the percentage the average citizen pays yet.

That depends on what nation that you are referring to.
In the USA, the wealthiest people are paying a larger tax rate.

That isn't true.

After all their deduction, the income that is exempt, they pay close to or less than 20 percent.

Do your homework please.

As you can see, I have done my homework, and the Americans who earn the most in income pay the most in taxes.

OOOPSIE!!

Maybe that's true, but what about in China's Northern Heibei Province?