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?