Reports suggest some ultra-wealthy individuals are considering leaving the UK due to proposed tax changes, sparking debate over the potential economic consequences.
At a glance:
- Some millionaires claim they may leave Britain over inheritance tax reforms
- Labour government defends changes as making the tax system fairer
- UBS forecasts 17% drop in UK dollar millionaires by 2028
- Critics argue threats of exodus are overblown and used to influence policy
Wealthy individuals in the UK are reportedly threatening to leave the country in response to proposed tax reforms by the new Labour government. The changes, which include overhauling the ‘non-dom’ tax regime and inheritance tax rules, have sparked concerns among some ultra-rich residents about the future of their wealth.
Proposed Tax Changes and Reactions
The Labour government, led by Prime Minister Keir Starmer, has pledged to reform Britain’s centuries-old ‘non-dom’ tax regime and alter inheritance tax rules. These changes aim to create a fairer tax system and raise funds for public services, according to the government.
Some wealthy individuals, like entrepreneur Bassim Haidar, argue the reforms could harm the economy if international business owners choose to leave or avoid moving to Britain. Haidar suggests an alternative annual tax on high-net-worth individuals as a potential compromise.
Predictions and Economic Impact
UBS’s Global Wealth Report for 2024 predicts Britain may lose nearly one in six of its U.S. dollar millionaires by 2028, with the number dropping by 17% to around 2.5 million. The report cites various factors, including the implications of the Russia-Ukraine war and changes to tax perks.
However, some experts argue that threats of exodus are often exaggerated and used as a form of lobbying. They point out that despite similar warnings in the past, London remains home to a large number of billionaires and maintains its status as a global financial center.
Broader Economic Considerations
Critics of the “wealth exodus” narrative argue that the economic impact of ultra-wealthy individuals leaving may be less significant than often portrayed. They suggest that many jobs and tax contributions attributed to this group are relatively small compared to other sectors of the economy.
“However, some experts argue that threats of exodus are often exaggerated and used as a form of lobbying”
NOT True. Look at any blue state that has a millionaire tax and you will find from the data that in a few years, the tax on those people has not pulled in what they expected as they simply MOVED to a friendly low tax redstate. Socialists always kill the golden goose. PM Thatcher said it best The problem with socialism is that it eventually runs out of other people money.
Exactly. That tax revenue they think they’ll simply “take” from wealthy residents moves out of the area-along with THE PREVIOUS TAXES they USED TO collect from the former resident.
THe stupidity’s mind-boggling as it’s been tried and proven an epic disaster.
smh