Just when you thought the state of the British economy couldn’t get any worse, the Chancellor of the Exchequer goes and increases the higher rate of tax for entrepreneurs and high earners in the UK. In efforts to kick-start the economy again, many people see the Chancellor’s efforts as actually storing up trouble for the UK in the medium-term.
Short sighted and easily jealous types will be rubbing their hands with glee at the news that part of the package to get UK moving again includes taxing high earners harder, because to them taxing the rich harder is the only just and fair way to go.
Well, let us assure you, the high earning Britons who will be affected by the new 45p tax will be planning their escape abroad right now, because more often than not, the higher the earner the more dynamic and flexible the person – flexible enough to realise when they are on a hiding to nothing and when it is time to expatriate and go in search of a more beneficial and rewarding life abroad no doubt!
According to a review of Alistair Darling’s taxation changes in the Times today, it’s estimated that around 300,000 high earners in the UK will be affected by the new higher rate of tax. This tax rate kicks in above a £150,000 threshold, and will see such individuals paying 45p in every pound that they earn over and above this level. The proposals are expected to come into effect if labour are re-elected – and we’d just like to have it on the record that if labour are re-elected we’re confident that of the 300,000 people likely to be affected, a very high percentage will be leaving the UK behind.
AXA are already predicting that up to 500,000 Britons will leave the UK in 2008, well if labour are re-elected this annual exodus will be further fuelled by the very people Britain should be encouraging to stay put. Entrepreneurs who make this country great, leading individuals who set a good example to the rest of the nation, higher earners who are likely to be higher spenders and savers. These are not the sort of people Great Britain should be alienating and isolating.
Fortunately however, these sorts of people are intelligent and dynamic enough to find a way around the 45p tax – and we’re pretty sure that a high percentage of them will be off in search of a new life abroad quicker than Gordon Brown can say ‘re-elect me, I have your best interests at heart!’