It’s been a busy weekend. My wife joined by Daughter, Son-in-law, his Mother and her husband in a garage sale Friday and Saturday. I had to work Friday and my wife is committed to our church’s Free Store on Saturdays.
Funny how plans can be upset. Friday night our TV quit. We inherited it from my Dad when he was in a nursing home. By our calculations it was purchased in 1985. Never a problem until it just quit. We don’t watch a lot of TV, spending most of our leisure time either ‘surfing or reading. We are, however, NCIS addicts.
So, I do a little research on the current state of TVs. We have an entertainment center and the largest TV it could accommodate is a 26″. Perusing the Wally World website, Micro-center and some other local spots, Wally World had the best deal. Come Saturday morning I made the trek to WW and picked one up. I was surprised to see that sales tax in our locale is now 8.75%! I haven’t bought any high dollar items (except for some firearms) in a number of years. If I remember correctly, the sales tax is now higher than the rate of my Kansas state income tax (based on a percentage of the federal tax paid.)
I was supposed to work at a local gun show Saturday. However, when I arrived, I discovered the water line had been severed by a backhoe and the local Fire Marshall had closed the site since the sprinkler system was toes-up. I was hoping to find some ammo. I did get 100rds of .45acp CCI Brass at WW when I picked up the TV so it wasn’t a total loss.
I just read an interesting editorial written by Andrew Lloyd Webber about the UK’s new 50% income tax on high earnings. According to the article, there is another 1.5% hike in National Insurance (health care?) plus a 13.3% tax for being self-employed for a total income tax rate of 64.8%. That figure does not include other personal, property and capital gains taxes. Here is a comment by ALW. The entire editorial can be found here.
The proposed top rate of income tax is not 50 per cent. It is 50 per cent plus 1.5 per cent national insurance paid by employees plus 13.3 per cent paid by employers. That’s not 50 per cent. Two years from now, Britain will have the highest tax rate on earned income of any developed country.
I write this article because I fear the inevitable exodus of the talent that can dig us out of the hole we find ourselves in. It is inevitable, given that other countries are bidding for entrepreneurs. The Government must modify its proposals.
I give you this example. I have altered the details of the family I write about for obvious reasons. But the essentials are true.
Last Thursday I met with a thirtysomething guy. I absolutely depend on him in a highly technical area of theatrical production. For legal reasons he has to employ himself through his own company. Under the new tax regime, he will have to pay 13.3 per cent to employ himself before he pays himself anything. And then he will have to pay 51.5 per cent on what’s left.
This is a guy at the cutting edge of his profession who works all over the world. He is in demand in every major territory where entertainment is produced. He has a young wife and two children. Last Thursday he told me that he and his wife had decided that the UK was no longer where they wanted to live.
His wife thinks the State education system is inadequate. And she fears that a bankrupt Britain will increasingly be a worse place in which to live as the horror of our present financial mess hits us all in the solar plexus.
He says that he is young enough to set up shop somewhere else. The new tax rates were the final straw. These talented young people know they will make it impossible for them to educate their kids privately in the UK.
So Britain plc loses not just the 40 per cent he would have paid in personal taxes under the old regime – plus NI and everything else – but… Come on, I don’t need to explain the knock-on effect. It’s obviously huge and immensely damaging – that’s why I am writing this article quickly and probably with too much passion.
I suggest you read the editorial and then look at the comments from those living in the UK. Read those comments and understand why the British Empire is an empire no longer and sinking into a 3rd world morass of socialism and parasitism.
Caveat: My father was born in the UK (Newcastle) and I’ve always been an Anglophile. However, it saddens me what the British government has done and how far they’ve sunk bashing the productive members of their society, being a blood-sucking leech living off the earnings of the productive.
The UK has always suffered under the burden of class envy as now we see what that has created. BO and the democrats are creating that same parasitic class envy here in the US; pitting the successful against the lazy, unemployed, uneducated (and uneducatable) members who subsist on welfare and have NO desire to earn their own living.
UPDATE: Michelle Malkin joins in: Andrew Lloyd Webber: Going Galt in Britain?