50% tax rate 'failing to boost revenues’

[Chris_]

50% 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.

Charlie Bean, the deputy governor of the Bank of England, last night insisted that those people should accept the pain as the price of restoring the wider economy to health.

The Confederation of British Industry, in its Budget submission today, urges ministers not introduce new levies on the rich, warning that the UK “will become a less attractive location for entrepreneurs and key employees”.

Telegraph

Imagine that... you raise taxes and people will find ways to avoid paying them! 

[Lacarnut]

Liberals have never learned the fact that the more you tax the rich and well-to-do, the more they will finds ways to circumvent paying high taxes. This has been proven over and over again. The luxury tax on boats, exotic cars, furs and jewelry was a disaster as the tax did two things; projected taxes were much lower and it almost bankrupted the boat industry in the northeast. The rich just quit buying these items until the tax was repealed or phased out.

[Chris_]

The rich just quit buying these items until the tax was repealed or phased out.

Or they register them in Rhode Island.

[Lacarnut]

Or they register them in Rhode Island.

Or they could buy used to avoid the punitive taxation.

I was a sales tax auditor and the trick to buying an airplane was to buy a used one from an individual or a broker and no sales tax would be due on that transaction. I could write a book on how people avoided paying sales tax (legal and illegal).   

[whiffleball]

Why can't liberals see the failure that Great Britain is becoming?

I spent 2 weeks there on 2 separate occasions, 3 years apart.  From the limited time spent in urban areas I could see the changes between visits.  More rundown buildings, junkies on the streets, prices so incredibly high we bought no souvenirs.  In Oxford I felt more like I was in a Middle Eastern country with British visitors. 

Most of the residents we spoke with lived rurally and were fairly reserved, but the conversations in the little hometown pubs highlighted quite a bit of disgruntlement and anger.

Of course raising taxes is going to fail to boost revenues.  Putting aside the issue of the rich finding ways around it (like the ballyhooed 'philanthropist' Bono), that country has major financial woes.  But, it still finds resources to pay for their diversity plan which is working out so very well.

[obumazombie]

Or they register them in Rhode Island.

Unfit for Command.

[DumbAss Tanker]

Hey, maybe they could raise it to 65%, I bet that'd work, huh?

 

[JohnnyReb]

Hey, maybe they could raise it to 65%, I bet that'd work, huh?

 

You beat me to it......it has always worked for the democrats so why not the Brits.

[TVDOC]

Liberals have never learned the fact that the more you tax the rich and well-to-do, the more they will finds ways to circumvent paying high taxes. This has been proven over and over again. The luxury tax on boats, exotic cars, furs and jewelry was a disaster as the tax did two things; projected taxes were much lower and it almost bankrupted the boat industry in the northeast. The rich just quit buying these items until the tax was repealed or phased out.

They stopped buying those manufactured in the US......large yachts (40 meters and larger) are designed and built in Norway, Finland, Indonesia, Australia and other places, and unlike cars or jewelry, they can be registered anywhere  (most during that period were registered in Panama).  No US registry, no taxes......same with "cabin-class" aircraft, buy Canadian or European, register it there.......it can still be used in the US with no problems, or taxes.....

doc