We are bombarded with news about illegal immigration. Most of the illegals are very poor seeking a few bucks and a better way of life. Opponents of immigration reform say that illegal immigrants are a threat to our economy. The real threat to our economy and our way of life may be the emigration of the rich. That’s right, emigration. The rich might soon leave.
Government statistics show that 65% of federal income taxes in the United States comes from the top 10% of employees. In other words, the rich really pay taxes. Although the United States did not have big tax increases for several years, information from England shows that in our new economy, now when taxes are increased, the rich can simply leave.
All agree that the IRS and the Treasury Department have been cracking down on undeclared offshore income and tax cheats. Although almost all agree that people who live here should pay their fair share of taxes, the Government may soon be pushing the envelope too if those Conference they call massive tax increases have their way. Raise taxes too and highly rich can simply leave increase our budget woes.
England, who recently raised the income tax and capital gains tax, has seen an exodus of high net worth individuals. In an article published In the Daily Telegraph, statistics show that the rich are now leaving England. It could be argued that some left because of the recession or problems getting jobs, but experts feel otherwise. He said a UK lawyer, “these figures are going to prove that taxpayers high net worth are highly mobile. The Government not only surely raise taxes on them and invite them to keep their money at home.
Accounting management of London, Richard Mannion, said: “this last point illustrates the tightrope that the Government is experiencing as for extracting more wealthier taxpayers from tax. Many of these individuals are internationally mobile, and although there are many places to live in the United Kingdom, the fact remains that there is a lot of competition from other countries equally attractive, some with better time. ”
The United States has not increasing tax rates in recent years, but that may soon change. The costs to finance new health care initiatives of President Obama and rein in our growing budget deficits must come from somewhere. Or we cut spending or raise revenue. For many in Congress, the politically expedient solution is to raise taxes on the rich.
If that happens, the United States will see an exodus of wealthy taxpayers? It’s not hard to imagine. In today’s global economy and society, moving residence in another country is not difficult and can be convenient for many.
There are no easy answers to our problems of balance sheets. Our executives and policymakers must remember, however, that raise taxes too much and leave just the few who pay taxes.