Give Us Your Rich, Europe Tells the U.K.

Wall Street Journal ^ | October 14, 2019 | Simon Clark

[karpov]

As rich people in the U.K. fret over Brexit and the possibility of an avowed socialist coming to power, Italy and other European countries are slashing taxes to tempt the jet set to relocate.

Of mounting concern for many of Britain’s wealthiest is the possibility that Prime Minister Boris Johnson’s embattled government could give way to a high-tax Labour government led by Jeremy Corbyn. A fund manager described the anxious attitude of the wealthy as “in case of Corbyn, break glass.”

That concern coupled with the uncertainty created by Brexit and its potential impact on the U.K economy, means some of the wealthiest citizens are unsettled and weighing their options.

Countries like Italy, which has introduced favorable laws to compete with the U.K. for the rich, will stand to benefit, wealthy people and their lawyers say. Advocates of the Italian option call it “la dolce visa,” a play on la dolce vita, or the sweet life. The top 1% of earners paid 29.1% of U.K. income tax, or £55.3 billion ($69.9 billion), in the last fiscal year.

“Our demise is everyone else’s opportunity,” British lawyer James Quarmby said in an interview after returning from a conference in Venice where Italian tax planners promoted their nation’s new rules at a luxurious hotel in a converted monastery on a private island. “It’s Corbyn. It’s not Brexit. Let’s be clear.”

Unlike famous rich bolt holes like Switzerland, Italy’s history of high taxes, volatile politics, stifling bureaucracy and slow economic growth has for years driven money and young people away. Yet political parties have found something they agree on: welcoming residents and expatriates with low taxes if they have money. A center-left government approved a favorable flat tax on non-Italian income for new residents in 2016.

[karpov]

This will happen in the U.S. if Sanders or Warren is elected. Sanders has already called for a national wealth registry and an exit tax.

[2ndDivisionVet]

I have a better chance at the White House than the two you mentioned.

[Little Ray]

Between vote fraud and electoral insanity, both of ‘em stand a fair to middlin’ chance.
But these dimwits forget that Congress has to approve these things. And many (most?) of them would be subject to the Wealth Tax.
Unless, of course, they exempt themselves.

[a fool in paradise]

I don’t think that the BRexit people are rabidly Socialist.

It does seem that some who voted for BRexit at angry at the government for stifling the change and trying to sell them out.

People can sit out elections and cause Socialists to take power.

But it isn’t like the EUSSR is a Socialist free paradise and that BRexit was a Socialist idea.

[sinsofsolarempirefan]

Corbyn is not going to win. He has the lowest poll ratings for Labour since the 1980s and has haemoraegged pro-brexit labour voters to the Brexit Party (and some to Johnson’s Tories) and die hard pro-remain voters to the Lib Dems. The worst case scenario is a hung parliament with another Tory minority government, there isn’t a chance in hell Corbyn would actually be able to form a government, even with SNP support, and Jo Swinson of the Lib Dems is already a vocal opponent of Corbyn and she will probably win a whole swathe of seats in pro-remain areas.

[sinsofsolarempirefan]

I can imagine turn out will be high for the next general election, Brexit is agitating the electorate and people know how important this election will be for the long term future of the country, not just the next 5 years.

[Cronos]

Actually the ultra-rich prefer the UK post Brexit. That’s because in January 2020 the anti-tax haven laws come into play and ultra rich like Rees-Mogg will need to declare all their assets.

[JMS]

I agree, this is a stupid article. Post-Brexit UK will have a much more capitalistic economy than what they’re allowed to have under the EU (5th Reich). Right now everyone is being forced into French style socialism which is why the EU economy is stagnant. Without Germany’s and Britain’s economies propping the whole thing up it will fall apart.

[mewzilla]

Those countries may be slashing taxes for the rich, but they’re NOT slashing their budgets.

Note to the rich: Sutton’s Law still applies.

[DUMBGRUNT]

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Yet another 'no comment' article.
Another reason this long-time subscriber is looking at being a non-subscriber.