International Tax Competition In Practice

From Tim Andrews on Monday, December 14, 2009 5:09 PM

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?

Permalink | Email | Print

Comments

And while the U.K. is raising taxes on ordinary Brits, it's giving special tax breaks to those who trade in Islamic financial products. Jolly olde England can kiss its prosperity good-bye with policies like these!
>> American Delight Monday, December 14, 2009 8:14 PM Report Comment

The best stimulus for the markets in the US would be to drop corporate, dividends, capital gains, and marginal tax rates until America becomes the most competitive place in the world. Not a new idea, but a good one.
>> Jeffrey Hosten Tuesday, December 15, 2009 11:13 AM Report Comment

Email this Page
Name
Email Address
Friends' Name
Friends' Email

Email this Page

International Tax Competition In Practice

Comments

Add a Comment