International Tax Competition In Practice

As we keep saying, decisions have consequences. And the British government is now reaping the consequences of it's decision to hike the marginal tax rate to 50%:

Britain’s financiers and entrepreneurs are quitting the UK at a rate of 10 a week to avoid Labour’s new 50% taxes.

“The UK model is broken,” said Stephen Hedgecock, a partner in Altis, a £1 billion hedge fund company with 35 staff that has relocated to Jersey, leaving only a small presence in London.

“It’s not just the 50% rate — it’s National Insurance, the treatment of pensions ... everything. It’s just a ridiculous amount of taxation.”

Of course, considering U.S. taxpayers already have a higher top marginal tax rate than Cuba or China, as high as 57.5% in some states, how long till this exodus of tax refugees starts happening here?

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