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uk: the rich, high taxes and the government

“If a very rich individual who makes his money overseas comes to Britain because he can be assured of not paying tax, then why should we worry? Most people who fall into this category will spend money which will find its way into the exchequer anyway.

“Someone who buys a house for £7m is typically going to have a million or so spent on it to make it "theirs". The sparkies, plumbers, brickies, carpenters, swimming pool johnnies and all the rest will get a chunk and charge VAT which can't be claimed back by the buyer. The profit all these tradesmen and builders make will also be taxed. The Bentley our man buys will benefit not just VW, but most of the share will go to the hundreds of sub contractors who supply the parts. Ditto helicopters, aeroplanes. In fact wherever the super-rich go, someone benefits. There are exceptions I'm sure - the City is not known for the integrity of its traders, but generally they are good for us.

“People flying in Business or First are subsidising your ticket. Insist that they pay more tax on their ticket and they may fly another airline.”

As globalisation progresses, these wealthy individuals have ever increasing choices as to where to live. That means the various governments are losing power to those productive people. The governments are now in competition to provide such people with the best conditions. Attacking those people is self-defeating.

Governments can only tax people and entities that cannot move easily. Also, the socialist attacks on productive businesses just drive them abroad. Britain loses the taxes, and the jobs and, the production.

High taxes is a high road to penury.

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