READ THIS LESSON FROM GREAT BRITAIN -Great Britain Loses Two-Thirds of All Millionaires after Raising Tax Rate
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.
A READER POST ——-The Evil Rich and their “Fair Share”
For years now we have let the left frame the narrative that the rich in this country don’t pay their fair share. Even our President has joined in this effort to demonize the very folks who are the engine of our economy, the small business owners.
“The revenue we’re talking about isn’t coming out of the pockets of middle-class families that are struggling — it’s coming out of folks who are doing extraordinarily well and who are enjoying the lowest tax rates since before I was born. If you’re a — if you are a wealthy CEO or a … hedge fund manager in America right now, your taxes are lower than they have ever been. They’re lower than they’ve been since the 1950s.” – President Obama, June 29, 2011.
So a wealthy CEO or a hedge fund manager are making too much money and not paying enough.
For the honest answer to that question, let us turn to an organization that isn’t always very friendly to the United States, even though it was formed, in part by the US.
The Organization for Economic Cooperation and Development (OECD) is an intergovernmental economic organization in which the 30 member countries discuss, develop and analyze economic and social policy. While all of the member countries are considered to be economically advanced and collectively produce two-thirds of the world’s goods and services, membership is limited only by a country’s commitment to a market economy and a pluralistic democracy.
The OECD was actually born to replace the OEEC, or the Organization for European Economic Cooperation which itself was created to administer the Marshall Plan. In 1961 the OECD was formed to takeover from the OEEC, with the emphasis being to develop strong economies in its member countries.
In a 2008 study released by the OECD, it found that America had the most progressive income tax system in the industrialized world. By looking at the richest 10% in each country, they found that America has the greatest share of personal and payroll taxes combined than in any other country in the world, for the richest 10%. In the US, the richest 10% pay a whopping 45.1% of their income in taxes; more than every other industrialized country in the world.
The next step is to see how much of the market income is earned by that top 10%. In America, they earn 33.5% of the market share of income. When you take those two figures and find the ratio of taxes to income, a surprising statistic pops out. Those evil rich people in America pay more in taxes in relation to their income than any other country, also.
No other country places that much of a burden on their top income earners, yet to hear the left – and our President – tell it, those evil rich people just need to turn over more of their income because it is only fair.
How dare we let the left frame the debate like this. We are not suffering from an income problem in this country; we are suffering from a SPENDING problem. But Obama still wants to increase taxes on small business owners, who are in many cases among the top 10% of income earners in America. This of course will only worsen the situation economically here in the US, for if the small business owners are afraid that more of their private property will be confiscated, then our economy will continue to drag along on the bottom.
Thomas Jefferson said it best –
“When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”