In 2009, there were 16,000 people in the UK who earned over $1.6 million a year. Then Gordon Brown hiked the tax rate to 50%. In one year, 10,000 of them fled the country.
This shows that taxes matter. Unlike Americans, the rest of the world taxes only people who live inside its borders. If you leave, you escape the taxes. Amazing concept!
Now that taxes are down to 45%, 4,000 of the expatriates have returned. The others like the new arrangement.
Question: Where did they flee to? We don’t know. What tax havens took them in? Bermuda? The Bahamas? The Cayman Islands? The Isle of Man? Jersey?
Where does a rich man go? He lives in urban Britain. How can he preserve his lifestyle in a sunny island nation run by . . . how should I say this . . . natives? The mantra of the Caribbean is this: “No problem.” There are always problems. They do not go away.
Americans with money stay put. They grit their teeth. Not the Brits.