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Should multinationals and multibillionaires pay fair tax?
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"Should multimillionaires pay taxes?"
Charlie Mullins doesn't think he should. Don't remember him?
The guy who suggested that “someone should kill” London’s “Muslim mayor”, Sadiq Khan. The man who made a variety of legal challenges to Brexit (despite declaring: “Nobody can tell me to shut the window on 500 million customers in the EU, and £225bn worth of trade.”) Then, this year, he opted to throw his lot in with Nigel Farage’s Reform party.
Well, the Pimlico Plumber has announced he's leaving the UK. He's not alone: The UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024 — second only to China worldwide, and more than double the 4,200 who left the country last year, which was itself record-breaking following the exodus of 1,600 high-net-worth individuals in 2022.
However, according to Fortune, crunching the numbers would suggest the departing elites’ absences aren’t likely to be as heavily felt as they would like. Around 500,000 millionaires will leave the U.K. by 2028, according to UBS’s latest Global Wealth Report, equivalent to a 17% fall, leaving questions about the U.K. and London’s position as a haven for the global elite. Continental European hotspots, including Milan, are becoming the new stomping ground for millionaires sick of London.
Paul Donovan, chief economist at UBS Global Wealth Management, told a media briefing that the U.K. had the world’s third-highest number of dollar millionaires. That, Donovan says, is “far more … than it deserves to have as an economy.”
The new Labour government is expected to bring higher capital gains tax, which primarily affects the wealthy, while the scrapping of favorable tax breaks for controversial “non-doms” may encourage others to leave. Last year, some 74,000 non-doms contributed £8.9 billion ($11.5 billion) in taxes to the economy. The idea that more aggressive taxes against the wealthy could have a severe impact on the U.K. economy has been met with skepticism. Firstly, the relatively small share of high earners means they don’t have a significant impact on the U.K.’s overall fiscal position. For example, last year’s non-dom tax take represented 0.8% of the U.K.’s total £1.1 trillion haul. Secondly, only a fraction of the wealthy decide to leave the U.K. when taxes increase, owing to other financial and personal ties they have built up living there over time.
In 2020, Dr David Hope and Julian Limberg, researchers at the London School of Economics’ International Inequalities Institute, looked at evidence from five decades of tax breaks across 18 countries. They found that these tax breaks had no impact on economic growth or the unemployment rate. That would appear to clash with the long-held argument of “trickle-down economics” used by proponents of tax breaks for the wealthy.
All of which means the services of the Pimplico Plumber and his mates won't be missed.
Charlie Mullins doesn't think he should. Don't remember him?
The guy who suggested that “someone should kill” London’s “Muslim mayor”, Sadiq Khan. The man who made a variety of legal challenges to Brexit (despite declaring: “Nobody can tell me to shut the window on 500 million customers in the EU, and £225bn worth of trade.”) Then, this year, he opted to throw his lot in with Nigel Farage’s Reform party.
Well, the Pimlico Plumber has announced he's leaving the UK. He's not alone: The UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024 — second only to China worldwide, and more than double the 4,200 who left the country last year, which was itself record-breaking following the exodus of 1,600 high-net-worth individuals in 2022.
However, according to Fortune, crunching the numbers would suggest the departing elites’ absences aren’t likely to be as heavily felt as they would like. Around 500,000 millionaires will leave the U.K. by 2028, according to UBS’s latest Global Wealth Report, equivalent to a 17% fall, leaving questions about the U.K. and London’s position as a haven for the global elite. Continental European hotspots, including Milan, are becoming the new stomping ground for millionaires sick of London.
Paul Donovan, chief economist at UBS Global Wealth Management, told a media briefing that the U.K. had the world’s third-highest number of dollar millionaires. That, Donovan says, is “far more … than it deserves to have as an economy.”
The new Labour government is expected to bring higher capital gains tax, which primarily affects the wealthy, while the scrapping of favorable tax breaks for controversial “non-doms” may encourage others to leave. Last year, some 74,000 non-doms contributed £8.9 billion ($11.5 billion) in taxes to the economy. The idea that more aggressive taxes against the wealthy could have a severe impact on the U.K. economy has been met with skepticism. Firstly, the relatively small share of high earners means they don’t have a significant impact on the U.K.’s overall fiscal position. For example, last year’s non-dom tax take represented 0.8% of the U.K.’s total £1.1 trillion haul. Secondly, only a fraction of the wealthy decide to leave the U.K. when taxes increase, owing to other financial and personal ties they have built up living there over time.
In 2020, Dr David Hope and Julian Limberg, researchers at the London School of Economics’ International Inequalities Institute, looked at evidence from five decades of tax breaks across 18 countries. They found that these tax breaks had no impact on economic growth or the unemployment rate. That would appear to clash with the long-held argument of “trickle-down economics” used by proponents of tax breaks for the wealthy.
All of which means the services of the Pimplico Plumber and his mates won't be missed.
He's all mouth. Wouldn’t surprise me if he does an ellal.
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21K views · 613 reactions | Why you can tax billionaires more and they won't leave. | By Gary's Economics | Facebook
Why you can tax billionaires more and they won't leave.
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