We sure hope all Americans are watching and learning from their friends in the UK.
The UK government thinks its government health care is just peachy. It thinks that Britain is a world leader in “alternative energy” like off shore wind turbines, and it thinks it has a superb education system open to all in its multi-ethnic society.
There is only one problem: the British government is broke and will be until like 2040 at the earliest despite a 50% tax on top earners that will certainly be a “brain drain” on the UK.
And Brits compain a lot about health care being rationed (and they have a lot more docs per capita than the U.S. has).
Even Andrew Lloyd Webber says he may leave his homeland….
By Andrew Lloyd Webber
The Mail (UK)
The opinion polls have uttered. The country loves the new 50 per cent top rate of income tax. Soak the rich. Smash the bankers. So Government spin doctors are in second heaven. The Conservatives’ silence redefines a tomb. And I suppose there’d be quite a turnout for the public flogging of Sir Fred the Shred.
But before you book your tickets, hold hard. And before you lynch me as a rich b*****d flying a kite for my own cause, let me beg you to believe that I am not.
I believe that this new top rate of tax could be the final nail in the coffin of Britain plc.
I am 61 years old. I have lived and worked in Britain all my life. Not even in the dark days of penal Labour taxation in the Seventies did I have any intention of leaving the country of my birth.
Despite a rumour put around some years back, I have never contemplated leaving Britain for tax reasons. But in the 40-plus years I have been lucky enough to work here, I’ve seen a bit. So I must draw your attention to what is really proposed in this Budget.
Here’s the truth. The proposed top rate of income tax is not 50 per cent. It is 50 per cent plus 1.5 per cent national insurance paid by employees plus 13.3 per cent paid by employers. That’s not 50 per cent. Two years from now, Britain will have the highest tax rate on earned income of any developed country.
The increase in the top rate of income tax to 50 per cent will not solve any of our financial problems. When Nigel Lawson cut the top rate to 40 per cent in 1988, the yield actually went up. It may well go down now that it has been raised.
One has to remember that it will be the most wealthy who have the strongest reason to leave the country, possibly taking all their tax with them. Those who have incomes of £160,000 or £200,000 may well stay and pay the extra tax. Those who have incomes of more than £1 million will have a strong incentive to avoid the tax or leave the country. The extra tax will not only affect the position of those who are already very rich, but also of those who think they might pass beyond the £150,000 threshold in the future.