Quote:
Originally Posted by Dent
The personal income tax is only for £130k and over salaries, and the 'OMG THE BRAINS OF LONDON ARE GONNA EXODUS' is bullshit, because its happening everywhere, Ireland is feeling it too.
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It's not really that much bullshit. Why should you take risks with your career which could really create a lot of value for society if the upside is cut in half? Why work so hard and create so much wealth when well over half (don't forget VAT, stamp duty, etc) of your earnings go to the government? At some point you just gotta say "Well I could be busting my ass and working hard and making a killing, or I could make 50% as much but spend more time with my family instead since the government is going to take my money anyways"
Spending time with your family is great and all, but it doesn't make a society wealthy. The poorest 50% of Americans pay only 3% of income tax. They depend on the wealth creation of those on the very top. Without the high income earners and wealth creators we couldn't have all the social services that the bottom 50% have come to depend on. But those at the top will start to say "fuck you, I'll just retire 5 years earlier." On the margin, it's true. It's Econ 101.
As for moving. Maybe less people move than threaten to. But less companies will be founded in London. If I want to start a bank, tech firm, etc. where the employees will be the top of their field and the wealth we will be creating will be vast and the employees will be able to earn £150k+/year, I would be more likely to open up shop in a country with a favorable tax structure. Also Econ 101. And yes, some people will move. I wasn't kidding when I said we were considering a move.