This is from the UK Telegraph: “The amount of income tax paid fell sharply [in Britain] last month in the first formal indication that the new 50p higher rate is not raising the expected amount of revenue.” Well, duh. Everybody knew this was going to happen. This is why average Americans look at people who run governments and say, “Are you stupid?” If you want less of an activity, tax it, and after you tax it, if you want less again, you raise taxes on it. If you want more of an activity, you lower taxes on it. But look what government does. If there’s a shortage of riders on the New York subway, what do they do? They raise fares. And this is what bureaucrats do, a shortage of revenue in Great Britain, so, raise taxes. Plus, they wanted to go out there and punish the rich.
Remember, Obama a couple of years ago talking about the capital gains rate, and people told him, “No, no, Mr. President, if we lower the capital gains rate we’ll have more revenues.” (imitating Obama) “No, no, I don’t care about that. I don’t care about the revenue. I want fairness.” And fairness to him meant raising the rate on capital gains. It’s the same thing here as in Great Britain. They wanted to punish their achievers, and they wanted to score points with the middle class and the lower class by making them think the rich are gonna be punished, but look what happens! The rich always find a way around it.
“The Treasury,” we’ll do the conversion into dollars, ’cause they use pounds in the story.
“The Treasury received $16.2 billion in income tax payments from those paying by self-assessment last month, a drop of $798 million compared with January 2011.” The amount of income tax paid fell sharply last month by almost a billion dollars, by raising the tax rate. And they’re shocked. The story is all about how leaders are shocked, they can’t believe that this happened. And they talk about how these evil rich guys found ways around this. Well, of course they’ll find ways around it, because there is no such thing as a static economy. Everything is dynamic.