UK Govt Just Learned About the Laffer Curve (Patreon)

The Laffer Curve is an economic theory suggesting that there is an optimal tax rate that maximizes government revenue. If taxes are too low, revenue is limited. However, if taxes are raised too high, the rich people leave to avoid or evade taxes, ie leave the country to reduce their taxable income.

Per my data, UK leads in millionaires per capita fleeing than any other country on earth.

In this case:

• The UK increased the capital gains tax, expecting to boost revenue.

• Instead, high-net-worth individuals and families left the country, likely to avoid the higher tax burden.

• This exodus led to an 18% drop in net capital gains tax revenue, resulting in a £2.7 billion loss, as reported by the Financial Times.

GOVTS ARE DUMB

ALL GOVTS

h.t Sanjay