Evidence shows again and again that if you want there to be less of something. , you tax it. Well, either there is less of it, or it goes underground, which means you don’t get to tax it at all. The British are learning this lesson now, as after passing a unsubstantial increase in their highest tax rate, they suddenly found that they had far fewer millionaires to tax. The Telegraph has more…
In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.
This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.
Last night, Harriet Baldwin, the Conservative MP who uncovered the latest figures, said: “Labour’s ideological tax hike led to a tax cull of millionaires.
Far from raising funds, it actually cost the UK £7 billion in lost tax revenue.
“Labour now needs to admit that their policies resulted in millionaires paying less tax and come clean about whether they would reintroduce this failed policy if they were in power.”
No, Labour will not admit that their policies caused the exact opposite of their stated intent. Like all leftistis, it will likely be someone else’s fault.