Skip to comments.Fifty Percent Tax Bracket Failing to Raise Revenues
Posted on 02/23/2012 6:57:17 PM PST by Sick of Lefties
The Telegraph reports that Britain's new higher taxes on the rich aren't producing any revenue for the government. It appears that people are changing their behavior to avoid the levy.
[end quote] Senior sources said that the first official figures indicated that there had been manoeuvring by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad. [end quote]
Not only did revenues to the UK Treasury not go up. They went down by £509 million, or roughly 5%.
The dynamics of human aversion to punishment as it relates to tax policy are well explained and documented by Arthur Laffer, et al in "The End of Prosperity" (2008). His ideas are summarized in my post "How to Fight Black Unemployment" (9/13/11).
There's a lesson here about tax policy and populist demagoguery, one that the White House and the national media will studiously avoid learning or disseminating. That doesn't mean that We the people are obliged to bury our heads in the sand and follow their lead.
only liberals are surprised by this result.
It would take an extremely large 2 x 4, with multiple hits to the head, for any Progressive/Democrat to get it!
In fact, it might be easier to teach a mule to dance the foxtrot!
Probably the reason why more and more Brits celebs are turning up on American tv.
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