Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.As proof that liberals world-wide have no clue about how the modern economy works, comes a new entry from Great Britain. As taxes there are generally high (think: VAT, inheritance tax, national insurance, etc.), there has been a steady stream of people leaving for better tax regimes in recent years. (Hello Italy.) Several media outlets are now reporting an increase on the out-flow. The sources for this information are professionals who aid people in relocating such as bankers or financial advisers. This up-tick in those fleeing is in response to the new government’s proposal to raise capital gains tax. This is to be expected. When France brought in a new tax on the wealthy, millionaires left the country by the thousands. The government had to reverse course a few years later.In GB, the damage does not stop with those exiting. Those staying are pulling out of their investments and trying to sell off any asset that could be taxed when the proposal is passed. This includes stocks, income properties and businesses. The idea is to download these assets and pay the present 20% Capital Gains Tax instead of paying a higher rate later. The effect of this on the economy will make things worse and the government will not realize the tax benefits it thinks. South of our border, VP Harris has stated if elected, she will generally follow the Biden budget plan for 2025 which includes a rate increase on capital gains in addition to a new tax on unrealized capital gains. In Biden’s budget, the rate change applies to households making over $1 million (a middle-class household with two professionals and modest investments.) The new unrealized capital gains tax is said to only apply to those with a net worth of over $100 million.There are other taxes that also have an impact. Most Americans are not leaving the country yet. What they are doing is trying to offset the federal level increases by moving to low-tax states. California is a great example. Businesses have been leaving for some years (Howdy Texas).Liberals like to say the wealthy should pay their fair share, making their tax collecting into a moral mission. This “justice-based rhetoric" is not out of some moral stance or holding “fairness” in high regard. It is a form of class warfare based on Marxism. Marxism is a morally bankrupt ideology as has been proven repeatedly in its various applications. Harris donors have been applying pressure for her to change her position. Perhaps she thought they, like her, were true believers. Now she finds out that they believe so long as it does not affect them.Some may think that £/$100 million is a lot of money. Do not let the numbers fool you. If you own a mid-size business either in Great Britain or in the US, it can easily be worth more than £/$100 million. So who are these individuals who are fleeing the country and selling off their assets? They are generally entrepreneurs, investment capitalists and highly paid professionals. It would be more accurate to say that these people are high income earners instead of the truly wealthy. These are the people who make new business, who employ not only people to work in their company but an array of other professionals like lawyers, accountants, and various advisors. These people can be in this position, because they have knowledge and abilities that are highly marketable. Those same qualities are also very portable. This, their ability to move quickly, is precisely what the liberals do not understand. Make an environment where you penalize the successful and risk-takers; they will either pack their bags and leave or take their ball and go home. If Ottawa does not smarten up it may well be “Buongiorno Italy” for Canadians.Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.
Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.As proof that liberals world-wide have no clue about how the modern economy works, comes a new entry from Great Britain. As taxes there are generally high (think: VAT, inheritance tax, national insurance, etc.), there has been a steady stream of people leaving for better tax regimes in recent years. (Hello Italy.) Several media outlets are now reporting an increase on the out-flow. The sources for this information are professionals who aid people in relocating such as bankers or financial advisers. This up-tick in those fleeing is in response to the new government’s proposal to raise capital gains tax. This is to be expected. When France brought in a new tax on the wealthy, millionaires left the country by the thousands. The government had to reverse course a few years later.In GB, the damage does not stop with those exiting. Those staying are pulling out of their investments and trying to sell off any asset that could be taxed when the proposal is passed. This includes stocks, income properties and businesses. The idea is to download these assets and pay the present 20% Capital Gains Tax instead of paying a higher rate later. The effect of this on the economy will make things worse and the government will not realize the tax benefits it thinks. South of our border, VP Harris has stated if elected, she will generally follow the Biden budget plan for 2025 which includes a rate increase on capital gains in addition to a new tax on unrealized capital gains. In Biden’s budget, the rate change applies to households making over $1 million (a middle-class household with two professionals and modest investments.) The new unrealized capital gains tax is said to only apply to those with a net worth of over $100 million.There are other taxes that also have an impact. Most Americans are not leaving the country yet. What they are doing is trying to offset the federal level increases by moving to low-tax states. California is a great example. Businesses have been leaving for some years (Howdy Texas).Liberals like to say the wealthy should pay their fair share, making their tax collecting into a moral mission. This “justice-based rhetoric" is not out of some moral stance or holding “fairness” in high regard. It is a form of class warfare based on Marxism. Marxism is a morally bankrupt ideology as has been proven repeatedly in its various applications. Harris donors have been applying pressure for her to change her position. Perhaps she thought they, like her, were true believers. Now she finds out that they believe so long as it does not affect them.Some may think that £/$100 million is a lot of money. Do not let the numbers fool you. If you own a mid-size business either in Great Britain or in the US, it can easily be worth more than £/$100 million. So who are these individuals who are fleeing the country and selling off their assets? They are generally entrepreneurs, investment capitalists and highly paid professionals. It would be more accurate to say that these people are high income earners instead of the truly wealthy. These are the people who make new business, who employ not only people to work in their company but an array of other professionals like lawyers, accountants, and various advisors. These people can be in this position, because they have knowledge and abilities that are highly marketable. Those same qualities are also very portable. This, their ability to move quickly, is precisely what the liberals do not understand. Make an environment where you penalize the successful and risk-takers; they will either pack their bags and leave or take their ball and go home. If Ottawa does not smarten up it may well be “Buongiorno Italy” for Canadians.Dr. A.W. Barber is the former Director of Asian Studies at the University of Calgary. He is internationally active and has wide-ranging interests.
