Didn't think so
However, there is evidence that it increased avoidance, as well as decreased inward investment and job creation...I know my wife was talking about it, their company began procedures to pay high earners through other systems and I suspect they were not the only one, you need competitive tax rates to compete effectively in a global marketable the return was simply not worth it in the long term.
Probably, but that is more to do with the temporary nature of the rate and it's one year advance notice of implementation and withdrawal, that allowed people to manipulate their tax affairs. A topic that has been covered extensively.
People would be able to manipulate their tax affairs regardless, especially so if it was permanent. The idea is to maximise tax revenues, and simply having high tax rates is not necessarily the most effective way to do this.
Funnily enough I did just the other day, and it has caused some high profile high earners to leave, but it isn't that comparable as their rate is 75% over 1M Euro.
The French tax system is a lot more than simply a 75% rate on high earners, the costs to a business on their staff of whatever stature are becoming increasingly uncompetitive and a barrier to investment, again my wife's company find it increasingly viable to reduce their French offices and relocate elsewhere in Europe or bring the work in centrally to the UK.
A bit like the minimum wage argument, at a sensible level it doesn't harm employment, but it would if you made it £100 an hour.
Indeed, a sensible rate lower than that psychological 50% barrier.
So all we are doing is debating where the sensible line is, and in reality the motivational factors around 40-45-50% seem to be minimal in the overall scare mongering that 'all the rich will leave the country'
I disagree, 50% is quite an important figure when you are considering how to manage your tax affairs, whereas 40% or even 45% is 'less than half' and has a significantly lower psychological impact on the earner. I know a few who begun to look into their tax liabilities when this was instituted whereas they did not before, some paid significantly less tax as a result.
It is counterproductive, the returns were low and would potentially have gotten lower and more insignificant as more people took a hard look at their tax liabilities and ways to lower them, not to mention bringing in competitive talent from outside the UK or keeping that talent within the UK.
40-45% seems to be the limit that many people will pay before they begin looking at how to actively reduce their liabilities to the State, and therefore is a more sensible level than 50%.
But I would be out of a job with a simpler system!
Go into industry if you are an accountant.
