Increase Taxes, Decrease Revenue — What the Left Must Learn From Great Britain
Today, Great Britain’s The Telegraph published an article showing the detrimental results caused by Britain‘s passing a 50 percent tax on their rich. Since passing the tax, over two-thirds of Britain’s most wealthy have left the country, leaving only 6,000 “wealthy” people — down from an original 16,000.
As a result, country’s treasury revenues have fallen an estimated 7 billion pounds ($11.2 billion). To try to stem the tide, the British government announced plans to reduce the tax rate to 45 percent this spring. While only a five percent reduction, this has helped to entice 4,000 millionaires to return. Finance Minister George Osborne is lobbying to have the rate reduced to 40 percent. Astonishingly, liberal politicians in the U.K. are opposing him on this. Apparently, they like seeing their millionaires flocking to other nations in droves.
Clearly, this proves that raising taxes does not always result in increased revenue. Perhaps more dangerous than the loss of money is the drain of highly productive people from their society, as well as the largest job creators.
Incapable of learning from history, Democrats on our side of the pond are committed to perpetuating this same flawed dogma. Obama and Senate Democrats are threatening to allow our country to run off the fiscal cliff if Republicans refuse to increase taxes. Although, after seeing what’s going on in Great Britain, one has to ask — exactly which cliff will we fall off of should we choose to raise taxes?
In addition, the United States has a neighbor to the north with a significantly lower corporate tax rate, and is roughly equal to the U.S. in amenities. Britain, being an island, makes it more difficult for people to pack up and leave. With NAFTA removing tariffs on trade, we may need to think about what is stopping people from making the short migration.
Democrats are choosing to appeal to their base, who are frothing at the mouth to stick it to the rich. The Republicans cannot acquiesce to the left. The facts and history are on our side.
- Fiscal cliff: Will liberals jump? (politico.com)
- READ THIS LESSON FROM GREAT BRITAIN -Great Britain Loses Two-Thirds of All Millionaires after Raising Tax Rate (itmakessenseblog.com)
- George Osborne’s autumn statement: another Black Wednesday | Editorial (guardian.co.uk)
- Britain’s On The Blower, Barky (maxredline.typepad.com)
- Grover Norquist Targeted In Fiscal Cliff Debate, Denounces ‘Sugar Plum’ Republicans (huffingtonpost.com)
- Fiscal Cliff Reality Awaits Republican Altered Tax Talk – Bloomberg (bloomberg.com)