December 4, 2012 by Julia
A few days ago, the Daily Caller published a piece about Britain’s 2010 tax increase on the wealthy, which states this completely foreseeable fact:
“Tax paid by the top earners fell from 13.4 billion pounds before the top tax rate came in to 6.5 billion pounds in 2010/11,” The Daily Mail reported on Tuesday.
Yes, that’s right, the UK lost almost 7 billion pounds (around $11.2 billion) by increasing taxes. How does that happen? Well, think about it. People with money will move their money elsewhere, earn money differently, or move themselves elsewhere to avoid paying more. It’s human nature, it’s perfectly legal, and anyone who criticizes this behavior had better be prepared to prove that s/he does not take a single deduction on his or her taxes or else have a very hard time explaining why it’s okay for him or her but not for UK millionaires.
Even UK writers understand the implications of this basic, undeniable fact about the human response to tax increases:
Daily Telegraph columnist Nile Gardiner, based in Washington, D.C., wrote Wednesday that the British tax debate parallels the current “fiscal cliff” stalemate in the United States, and is “a wake-up call to Barack Obama’s high tax America.”
“Driving many of the country’s most successful people, as well as their money, out of the United States is sheer economic suicide,” Gardiner wrote.
“The American dream rests upon the foundations of economic 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 it is also strangling wealth creation. This is a path to decline, not renewal.”
“As tax rates rise,” the British observer warned, “there will be every incentive for overseas businessmen to put their money elsewhere, rather than invest in big government America.”
Of course, some of us could have seen–and did see–this coming from a mile away. I wrote about it in August myself, and Thomas Sowell covered it in December of 2010. Raising taxes will make the wealthy leave or move their money, and total income will drop. Facts are facts, numbers are numbers, and two plus two will always and forever equal four, regardless of what Big Brother wants us to believe.
And pardon me, I think I will do the “I told you so!” dance after all. Because I TOLD YOU SO.
(and you’d better believe that I will link to this post when Obama’s tax hike bonanza has tanked the economy, because clearly, we can’t expect him to learn from the past when there is class warfare to be waged and Americans to divide)