Posted on 03/09/2010 8:12:17 PM PST by Free ThinkerNY
London will become the most highly taxed financial centre in the world when the new 50 per cent income tax rate for those earning £150,000 or more comes into force next month.
Taxes will be higher than for financial workers living in the other key centres of New York, Paris, Frankfurt, Geneva, Zurich, Dubai and Hong Kong, KPMG calculated.
The findings will raise fears that Labour's levies are driving businesses and bankers overseas and threatening Britain's competitiveness.
Terry Smith, chief executive of broker Tullett Prebon, warned yesterday that increasing taxes on workers and companies would only hinder the economic recovery.
He also accused Labour of 'criminal negligence' by racking up a budget deficit in the boom times rather than saving money for a rainy day.
'The UK economy is an utter disaster on any number of fronts,' Mr Smith said.
Tullett announced last December that it will help employees move abroad if they want to avoid the top rate of tax, and Mr Smith said workers are already looking at relocating.
(Excerpt) Read more at dailymail.co.uk ...
How does one short the UK economy? I have decided to make a living off of loons.
50......%....good grief.
Might drive some of the jobs that Sarb-Ox sent overseas back here.
After all, the rich can afford advisors to help them to do this.
Just reading that made me hear voices. Obama proclaiming, “I have a dream”.
This is one trophy that Obama may actually win for the U.S.
I’m pretty sure Maobama will try to top 50%..
Well the problem for the US isn’t that we have driven away the bankers (well we have) but we also have driven out the companies. We are making is so that banks aren’t as profitable in the US so they want to move overseas.
It’s hard to get those jobs back. Also in NY if you combine the federal tax, state tax, city tax, and other misc taxes...I bet it’s higher than 50%.
i have no sympathy for the brits - why? - because they no longer have a vision! Of course they have been betrayed by the elites who worship evil (I will not go into further details - do your own research).
I guess London no longer wants to be a financial center.
thank you. the intent is certainly not accomplished, this is purely a money grab by those in power.
I have no doubt! This will be us in a few years if congress is not taken back from the kooks there now.....
He's getting closer and closer, but not through the standard tax tables. You have to look at the cumulative taxes and disallowed deductions for our top earners/investors.
As the bar goes higher, Obama will try the Fosbury Flop. Let's hope he flops....
socialism is like cancer, it eats away at you slowly until you finally die.
I bet the Anglo Saxons regret leaving Germany now.
I thought London has a Tory Lord Mayor? Can he veto this?
Sell Sterling. Easiest way to do this for Americans is to sell June British Pound futures on the Chicago Merc's IMM exchange. Any futures broker can handle this.
But, in order to enhance profit, it is also almost certainly correct to write 1-month put options along with your short sale. Happy to discuss why this is so, if you have any real interest in the subject.
Also, one should sell what are called 'Long Gilt' futures; these are UK 10-year bonds. Probably, one has to sell these every 3 months (the contracts expire every 3 months, and one must ''roll them out''). UK debt will overwhelm the nation considerably faster than US debt will overwhelm this nation (which it will, ultimately).
If you're of a bolder nature, you might well consider selling 30-, 60-, or 90-day 'forward' contracts in GBP/AUD (that is, effectively, buying Australian Dollar and selling British Pound (aka 'Sterling') against).
The Brits have screwed the pooch, and the only thing that will save them temporarily is kicking out New Labour. The Tories (Conservatives) haven't anything to offer, because they will not kick out the Islamists from the UK, but their election will stave off the evil day for awhile.
If, by some miracle, the UK order the Muzzies out of the nation (hey, Edward III kicked out the Jews...so it CAN occur, ok), then that's the ONLY time I'd buy any Sterling-denominated assets these days.
Most of the UK, sadly, is today just the apotheosis of a combination of allowing unrestricted immigration plus the idiocies of the welfare state. As one commentator put it, 'fights and lock-ins, don't waste your time'. Get long Sterling or Gilts at extreme risk to your pocketbook; far better to sell both of them, and hedge your trade with put options.
Good trading to you, m'FRiend!
I guess Margaret Thatcher failed in her overall mission too then.
I have been doing well shorting 30 yr treasuries. I just wish I had the guts to put more money there -- but I believe in not all eggs in one basket theory.
How many British Rockers have moved off shore? I’ll bet that is costing the country a bunch! What’s wrong with politicians that they think that the big money makers have to stay there? Obummer are you listening?
I've been short the 30-year futures since first of the year. It would SEEM that I've been a loser...but...I've also written each month's OOM puts, and am presently (and I think will continue to be in future) way profitable on this trade.
Point is, I think, that the debt-issuing nations are, by dint of their own irresponsibility, running out of time.
Can you, in your wildest dreams, conjure up a situation wherein US 30-year debt rises, say, 10 handles? Short of outright war with Iran and/or other malfeasors, I cannot.
I'll risk a few thousands on this proposition, that US long debt cannot risk very much, all through this year at least until December contract.
Best wishes, and good trading to you!
The political climate may stink, the overall global economy may not be bright, but at least I can convince myself that life is good because I made a few bucks off of the ineptitude of liberalism.
My best to you!
I live in Los Angeles. I’m wayyyy over 50% when I factor federal, state, FICA, local, property, sales and misc. taxes, plus fees, plus the embedded taxes that cause everything I buy to me more expensive (eg gas tax for the wheat to get to the baker). Add it all up, I say in LA I’m paying
70% right now.
Absolutely. And the result of such money grabs when successful is only more money grabs. Eventually the locality goes bust and has to start all over again.
Here in the U.S. we are facing this in the liberal cities, where politicians are raising taxes during a recession. The result is typical - personal and capitol flight to a less taxed area. DOH!
Obama: “I see your 50% and raise 5%”.
IIRC (and it was a long time ago) the tax rate was so astronomical that Lady Thatcher received an enormous raise just to have a meaningful bump in income.
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