Millionaires and their wealth are not just fleeing Hollande's France, with its new 90% top tax rate. They've also been escaping Britain's 50% tax too. As The telegraph's reported two weeks ago, ''almost two-thirds of the country's million pound earners disappeared from Britain after the introduction of the 50% top rate of tax.'' In the 2009-10 tax year, more than 16,000 people declared an annual income of more than 1 million pounds to Revenue and Customs. This number fell to just 6,000 after Gorden Brown introduced the higher tax rate. It will be a huge challenge for Britain to recover its lost wealth even now that the rate was dropped to 45% this year. Labour's ideological tax hike led to a tax cull of millionaires costing the U.K. around 7 billion pounds in lost revenue. These dumb Marxists never learn....are you listening Obama?
There are important lessons here for the White House and the figures coming from the UK should be a wake-up call for the President, who has pledged, in his election campaign class war, to force ''the wealthiest Americans to pay more in taxes.'' Specifically, Obama wants to raise the top rate for those earning $250,000 a year or more from 35% to 43%. Compare this to the current top income tax in Singapore of 20% and Hong Kong at 15%. Former New York City Mayor Rudy Giuliani warned Republican leaders against caving in to President Obama on tax increases, saying, ''Americans voted in November for a debt reduction compromise that includes deep spending cuts, especially healthcare costs.''
Combined with the rising cost of ObamaCare, which is already forcing many businesses to shed jobs, this will have a disastrous effect on the US economy. Small businesses will be especially hard hit, with large numbers of small business owners caught in the new tax bracket. Even the White House itself admits that more than 600,000 small businesses will be slammed by the new tax hike. Other estimates based on treasury Department figures, suggest that up to 1.2 million businesses could be affected, threatening more than a million jobs!
Obama's tax increase will also act as a major disincentive for foreign entrepreneurs to invest in the US economy, build businesses and create jobs. As a survey of America's Fortune 500 companies showed, over 40% ''were founded by immigrants or their children.'' These companies are employing more than 3.6 million people, generating $1.7 trillion in revenue. As tax rates rise, there will be every incentive for overseas businessmen to put their money elsewhere, rather than invest in Obama's Big Government America. The President should keep repeating the iconic mantra, ''The business of America...is Business!''
It is also a Marxist illusion to believe that high earners in America do not contribute enough money to the quickly draining coffers of the federal government. What a delusional Obama refers to as ''the wealthiest Americans'' already pay more than their ''fair share'' in taxes. The top 1% of US earners already pay 22.5% of all federal income taxes, even though their share of total income earned just 13.5%. The top 2-5% pay 17.3% of the total share of taxes paid, even though their share of total income earned is 12.5%. The top 20% of Americans pay 67.9% of total federal income taxes, while their share of total income earned is 50.9%.
The Way I See It....under Barack Obama, the United States has steadily fallen down in index of the world's freest economies and is now ranked tenth in the world, below Australia, New Zealand, Switzerland and Canada. If this idiot succeeds in raising the top rate tax in his second term, it will fall even further. Trampling economic freedom is hardly the best way to handle America's huge debt, which stands at a staggering $16.3 trillion and rising. Instead of increasing revenue, tax hikes are likely to reduce them, as the British example has clearly shown. ( Read Thomas Sowell's comments in my November 9th posting.)
Driving many of the country's most successful people, as well as their money, out of the United States is sheer economic suicide. I've written before that I think that is exactly what this anti-American trained bastard wants to do. The American Dream rest upon the foundations of economics and individual liberty, a dream that has attracted millions of entrepreneurs to the land-of-the-free for centuries. President Obama's Big Government agenda is not only generating more debt, but is also strangling wealth creation. This is a path to decline....not renewal. Giuliani sums it up: ''This is a spending problem; it's not a revenue problem. Obama is trying to convince his ignorant supporters that raising taxes on the rich will somehow make it easier to solve. It's a symbolic gesture, rather than a real gesture.''
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