Originally posted by Ripsnort
A person told me that more than one British Rock artists in the 60's and 70's changed their citizenship to U.S. due to the British Gov't taxing entertainers something like 95% of their wages. Is this true? Is it still true?
In fact it was slightly worse than that. The
top rate of income tax, which only the very well off would be eligible to pay, was 83%. But in addition to this, there was a 15% surcharge on "unearned" income (from investments etc.) making a total of 98%! The reason for the high rates was a socialist, Labour govt. led by Harold Wilson, then by Jim Callaghan, who had gained office by promising to end the 3-day week that had been imposed to conserve fuel during the 1973/74 miners' strike. The only way they could do it was to pay off the miners with a huge pay rise of ~30%, but then there was an army of workers who wanted theirs. The govt was basically hijacked, and as well as huge pay settlements was having to pour in billions of £ to loss making, strike riven, nationalised industries. The smart money buggered off overseas, so tax receipts actually went down. But the unions wanted more and more and by January 1979, in the middle of one of the coldest winters I can remember, the country reached a state of collapse in season which became known as the Winter of Discontent. The Labour govt. got bounced out of office in May 1979 on a vote of no confidence.
Margaret Thatcher became PM. From Day1 her quest was to tackle the unions, and tackle them she did. The supply of money that was being haemorrhaged into those overmanned, loss making, 19th century industries was cut off! Whereas few politicians could only dream of income tax lower than 40%, Thatcher made it happen. Within a few years, the top rate of tax had come down through 60%, 50% and settled at 40% where it remains to this day. The 15% investment surcharge was abolished, and the wealthy entertainers you spoke of - guys like Elton John - began returning to Britain. Tax receipts actually went up because more people were prepared to pay, and the rates were more competitive with the rest of the world.
The current govt led by Blair (soon to be superseded by Gordon Brown - I give Blair 6 months max) has reversed much of the good done by Thatcher, as it believes in a high tax economy. It is my belief that this current govt will also end in a state of economic collapse, possibly within 2-3 years.
As for our entertainers becoming US citizens, I don't think many did. I think most of them applied to be resident aliens.
Sorry to besmirch this thread with the facts - I realise it was a troll.
