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The Laffer Curve, Over The Pond

Tax more, get less.

Speaking of higher taxes (and President Obama always does), there’s news from once fair Britannia. Preliminary figures out this week show that Britain’s 50% top marginal income-tax rate may have reduced tax revenue from top earners by as much as 5%, compared to the old 40% top rate. Tax revenue from those filing self-assessments due January 31 was down some £500 million versus last year.

I’m with Keith Hennessey on this one.  Marginal tax rates on the very rich hurt less than we think, but they force capital out of the country, and do hurt the next tier down, who are doing more of the actual investing.

Posted in Economics.

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