U.K.’s 25% Tax Hike on the “Rich” Produces Less Revenue; Tax Hikes on the Rich Don’t Work, Stupid!!!
From the “No Sh@t Sherlock files” comes this bit of non-shocking news provided by the ever vigilant Tax Prof Blog:
The Telegraph, 50p Tax Rate ‘Failing to Boost Revenues’:
The Treasury received £10.35 billion in income tax payments from those paying by self-assessment last month, a drop of £509 million compared with January 2011. Most other taxes produced higher revenues over the same period.
Senior sources said that the first official figures indicated that there had been “manoeuvring” by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad.
The self-assessment returns from January, when most income tax is paid by the better-off, have been eagerly awaited by the Treasury and government ministers as they provide the first evidence of the success, or failure, of the 50p rate. It is the first year following the introduction of the 50p rate which had been expected to boost tax revenues from self-assessment by more than £1billion.
Obama and the dems need to realize one important fact… Tax hikes on the rich don’t work, stupid!!!