Drudge Retort: Red Meat for Yellow Dogs
Wednesday, February 22, 2012

Barack Obama has spent the last several months insisting on a tax hike for higher income earners in the US, casting it as an issue of "fairness" and of deficit reduction. In his State of the Union speech, Obama used the word "fair" or a derivative nine different times, and calling for the wealthy to pay their "fair share" of taxes -- even though the wealthy account for a much higher percentage of income-tax revenues both as a share of the revenues and as a share of income than the rest of the population. Democrats have tried to push through a "surtax" on income over a million dollars in a year in order to put Obama's rhetoric into reality.

Speaking of reality, the UK did exactly what Obama and the Democrats propose to do here -- pass a surtax on high-income earners. The new tax rate of 50%, which took effect at the beginning of the year, was expected to raise a billion pounds in extra revenue each month. So how did that work out? Tax revenues dropped by more than £500 million:

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OOPPSS please remove


Surtax on wealthy in UK results in lower revenue

Headline fail. From the original story:


Although the official statistics do not disclose how much money was paid at the 50p rate of tax, the figures indicate that it is falling short of the money the levy was expected to raise.

and


However, another Treasury source added that the tax deadline had been extended by two days because of industrial action at HM Revenue and Customs. Therefore, it was too early to begin assessing the revenues raised from the 50p rate of tax because about 20 per cent of self-assessment tax is paid in the hours before the deadline.

www.telegraph.co.uk

And this is coming from one or Murdoch's overseas rags.

So revenues are down 5 percent with 20 percent yet to come in.

Another gashouse gem!

Greece tried it a while back too.
Same result.
This is nothing new. Capital flows to where it promises the greatest ROI, borders be damned.

". Capital flows to where it promises the greatest ROI, borders be damned. "

No problem if every country taxes it. Let capital flow to Gingrich's moon colony if they don't like it.

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