Really, who would have thought this would happen?
(UK Telegraph) 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. (snip)
Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.
With every action, there is some sort of reaction. In this case, those with money take it somewhere else, someplace that would appreciate the investment. Furthermore, those with money will always be able to find ways to shelter it and remove it from taxation. Instead of taxing the “rich”, why not find creative ways to get them to pump the money into the economy? You want them to spend it, you want them to invest it, you want them to create businesses. No, they don’t create businesses to create jobs, they do it to make money for themselves and investors. But, as a sidebar, they create…..jobs!
Does anyone think left leaning Hollywood creates movies to create jobs? No. They generally do it to make money. How about far left Progressive Peter Lewis, owner of Progressive Insurance? Think he’s in it to provide jobs? Nope. To make money.
And what happens when people are working? They are paying taxes. Income taxes to the state and federal governments. Sales tax. Property tax. Wealth is created. Wealth flows. If you tax the hell out of people with money, there will be less money invested, less money in business creation, and, consequently, less money coming in to the treasuries.