As Margaret Thatcher said, “The trouble with Socialism is that you eventually run out of other people’s money.” And that can work either when the state runs out of their money or when they run out on the state.
In the 2009-10 tax year, more than 16,000 people declared an annual income of more than £1 million to HM Revenue and Customs.
This number fell to just 6,000 after Gordon Brown introduced the new 50p top rate of income tax shortly before the last general election.
George Osborne, the Chancellor, announced in the Budget earlier this year that the 50p top rate will be reduced to 45p from next April.
Since the announcement, the number of people declaring annual incomes of more than £1 million has risen to 10,000.
It’s almost like the number of millionaires in a country fluctuates with the tax rates. It’s almost as if people have the ability to move from one country to another in response to their own interest. It’s almost as if building your spending plan around high tax rates is as sustainable as building your affordable housing program around sand castles.
Oh and bad news for Governor Moonbeam, states are even easier to move out of than countries.
Final question. Anyone care to speculate how many of those pop-up millionaires were in the arts, including film people, writers and musicians?