It is an undeniable truth of life that wealth, capital and labor go where they are treated well. It is this economic truth more than any other that prevents socialism, communism, fascism, and kleptocracy from yielding positive economic benefits in the long term.
When you raise the tax rate, people will modify their behavior to avoid paying the tax, even if that means halting economic activity. As Ronald Reagan said:
The Founding Fathers knew a government can’t control the economy without controlling people. And they knew when a government sets out to do that, it must use force and coercion to achieve its purpose. So we have come to a time for choosing.
UK Daily Telegraph:
Almost two-thirds of the country’s million-pound earners disappeared from Britain after the introduction of the 50% top rate of tax, figures have disclosed.
In the 2009-10 tax year, more than 16,000 people declared an annual income of…
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