Tax the Rich, Until They Go Galt Anyway

by Mike on November 29, 2012

in Economy,Politics,UK Politics

The United States isn’t the only country operating under the delusion that it has a revenue problem.  The UK, a country whose welfare state is even more bloated than ours, thought the same thing when it decided to increase taxes on its wealthiest citizens to 50 percent.  Predictably, the tax didn’t solve the non-existent revenue problem, but it may have created one:  half of their millionaires fled the country and revenues decreased.  I guess the knee jerk reaction to soak it to the rich back at the height of the financial crisis wasn’t really though through, as if any liberal policy idea ever is.

Fortunately for the UK, the Conservative Chancellor George Osborne is trying to cut the top rate all the way back down to 45 percent.  The problem is, even the Tories still don’t seem to realize they have a dependence/spending problem and the child-like Labour leader is planning more class warfare by railing against “tax cuts for millionaires.”

History has shown that high taxes and bloated governments always lead to recession and debt, while free markets lead to prosperity.  I guess some people will never learn.

Hat tips:  TaxProf Blog and Instapundit

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