Results of a 50% tax Rate on the Rich...

Speaking of Obama's plan to tax the rich, in reality, the United Kingdom did exactly what Obama and the thieving Democrats propose to do here — pass a surtax on high-income earners.  In the UK, their new tax rate of 50% took effect at the beginning of the year. When it was passed, it was thought that the new tax would raise a billion pounds in extra revenue each month.  That is what was expected.  So, how did that work out?  Well, it is a fact that tax revenues have dropped by more than £500 million.

The self-assessment returns from January, which is when most income tax is paid by the better-off, were eagerly awaited by the Treasury and government ministers. It was expected that those returns would provide the first evidence of the success of the 50% rate.  It was the anniversary of the first year following the introduction of the rate.  However, the rate was not the success which they expected. What was expected to boost tax revenues from self-assessment by more than £1 billion, instead led to a loss of revenue.

The UK Treasury received £10.35 billion in income tax payments from those paying by self-assessment, a drop of £509 million compared with January 2011. Most other taxes produced higher revenues over the same period.

Senior sources said that the first official figures indicated that there had been “ maneuvering” by well-off Britons to avoid the new higher rate. The figures will add to pressure on the Coalition to drop the levy amid fears it is forcing entrepreneurs to relocate abroad.  Gee, that's a surprise... NOT!

The same will occur here.  Those with the means will reallocate their monies where they will be untouched.  And, the bulk of the increases will come from those small businesses and families that make less than $300,000 a year.  These people who will be hit are upper middle class.  They are not rich...  They are not Obama's buddies in the entertainment industry.  They are mom & pop operations.

The proposed increases, especially when combined with the taxes & penalties mandated by Obamacare, will lead to layoffs, business closures, etc.  It is bad for people, bad for business, and, most of all, very bad for the USA.