What happens when you “tax the rich”, like Obama wants to do?
The UK Telegraph explains what actually happens when you tax the rich.
Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50p top rate of tax, figures have disclosed.
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.
The figures have been seized upon by the Conservatives to claim that increasing the highest rate of tax actually led to a loss in revenues for the Government.
It is believed that rich Britons moved abroad or took steps to avoid paying the new levy by reducing their taxable incomes.
[…]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.
Similarly in France, with their Socialist leader’s 75% top tax rate: (worse than Obama!)
A flood of top-end properties are hitting the market as businessmen seek to leave France before stiff tax hikes hit, real estate agents and financial advisors say.
“It’s nearly a general panic. Some 400 to 500 residences worth more than one million euros ($1.3 million) have come onto the Paris market,” said managers at Daniel Feau, a real-estate broker that specialises in high-end property.
[…]While the Socialists’ plan to raise the tax rate to 75 percent on income above 1.0 million euros per year has generated the most headlines, a sharp increase in taxes on capital gains from the sales of stock and company stakes is pushing most people to leave, according Didier Bugeon, head of the wealth manager Equance.
French entrepreneurs have complained vociferously against a proposal in the Socialist’s 2013 budget to increase the capital gains tax on sales of company stakes, which they argue will kill the market for innovative start-up companies in France.
Entrepreneurs in the high-tech sector in particular often invest their own money and take low salaries in the hope they can later sell the company for a large sum.
They say a stiff increase in capital gains tax would remove incentives to do this in France. They also argue that capital has already been taxed several times in the making.
Rich people are not stupid. If you change the rules of the game, they make adjustments. Why on Earth would anyone keep working as hard as before when the government takes more of what they earn and gives it away to left-wing special interest groups? You either stop working as hard as before or you leave the country entirely. Rich people are not our slaves.
We let people keep the profits they make so that they will risk their capital and try to invent new things and create jobs. If we don’t let them keep their profits, then they will not save, invest, take risks and create jobs. People who depend on “Obamaphones” don’t create jobs. Only rich people do. And the more you tax the rich, the fewer jobs you will have. That’s the way the world really works. Taking money from those who work and giving it to those who don’t sounds “nice”, but it doesn’t actually help the poor. What helps the poor is having a job, not giving them free stuff paid for by others who work. You should not be able to make more money by not working than by working in this country, either.
Remember what happened when Reagan and Bush cut taxes? Massive drops in unemployment and higher revenues from taxes.