The article from MSN linked below is unable to take in how high British taxes are. It mentions the new higher rate for higher earners but gets the figure wrong. It's not 45% that will be introduced, as the effective rate is already over 50%. But Americans could not believe that to be true, I imagine so MSN adjusted the figure down a bit to a more believable figure.
When you add in the uncapped 12.8% Employer's National Insurance and now the 1.5% Employee's, the full amount levied on higher earners will be 59.3%. Putting that another way it will cost GBP 100,000 to put GBP 40,700 into the pocket of a company director or equivalent payroll employee.
From my viewpoint, it's a farce, and anyone would be mad to pay themselves in this way. A total tax rate on income over 40% should be avoided at all costs.
Pre-1997 I paid 40% on any bonuses I earned, so that it was worth paying myself some salary. Since Brown started to thrust his grubby socialist paw into my pocket as of 1997, raising the combined rates of Income Tax and Nat Insurance to over 50%, I haven't actually paid myself anything at all from my business. Why should I?
In fact I've left the UK and now don't pay UK tax, like millions of others of so-called high earners who've had enough and left. The trouble for governments is that so-called high earners are more likely to emigrate than average earners as entrepreneurial and other skills are easily transferable around the world. So let's give dear old Alistair a pat on the back.
'Help yourself, Darling.'
We've all left anyway.
It's a funny thing though. The socialists seem to get it that wealth has legs when it comes to foreigners entering Britain. They don't need to pay very much tax at all. It seems that the one thing you mustn't be is successful in your own country. In fact I think that that quote came from the bible, where the sentence 'No prophet is accepted in his own country' resonates in St Luke's Gospel Chapter 4, Verse 24. They might add to that that no profit is welcome either, at least it isn't in Britain. No wonder Brown's fiasco economy has nothing left to hold it up.
The GBP is on its way to dollar parity next year...not quite cheaper to use than the toilet paper it buys as in Zimbabwe, but heading that way. Brown and Mugabe have more in common than you think. In both cases, no one can be allowed to rise higher than they have themselves. That leaves little room for anyone to go up, so everyone heads down and out, while money shrinks to vanishing point. Zimbabwe was once one of the most prosperous countries in Africa, as was Britain in Europe not all that long ago. Sad really.
ACTUALLY - it's much worse than that as Boris Johnson explains in The Telegraph as follows -
We now know that to fund this fiscal stimulus, taxes are going up on incomes over £40,000; we know there are going to be huge increases in national insurance that will hit employees, employers and the self-employed. How on earth is that supposed to boost job creation?
Higher earners will soon be paying not 60-odd % but more like 70%. It's so quaint of Britons to keep electing Labour governments, and destroy their own economy, but never mind. As long as they're happy with worthless confetti lining their wallets, they can elect whomever they wish. For the 2 million Brits who left between 1997 and 2007, there is no need to hurry home just yet. Just watch out for the 4-5 million who will be joining you in the next ten.
Here's one more thinking about going. He's worth GBP 120 million.