Announced in 2008 and implemented in fiscal 2010-2011, the British government imposed a substantially higher marginal tax rate on the country’s top 1 per cent of income earners, raising the rate from 40 per cent to 50 per cent, and simultaneously revoking the personal exemption traditionally granted to all taxpayers.
The London-based Institute for Fiscal Studies, an independent research organization, calculated that the higher rate was originally expected to transfer £3-billion ($4.7-billion) from the top 1 per cent to the bottom 99 per cent. It didn’t come close. Neil Reynolds – The Globe And Mail – Click To Read More…
Ahh… The arrogance of government. Mr Reynolds goes on to say,
The British experience suggests that, when marginal tax rates hit 50 per cent, people find ways not to pay.
Yeah, by not working. A recent study done suggest that 50% is about all the government can hope to get from the taxpayer. It’s all very cynical and it’s not like the government is keeping a real tab on things. – DSMW