HIGHER EARNERS may flee the country due to the UK's high tax rate, according to research published by UHY International.
Britain is ranked seventh in a list of tax rates for people earning more than $200,000 (£122,000) in major economies across the world.
Take home pay was just 60.9% of income in the UK, while in USA it is 69.9%, Russia 87% and Dubai 100%.
Britain is also ranked seventh for its tax rate on people earning less than $25,000 a year, behind the USA, Spain and Ireland.
"Many governments are facing tough choices as they grapple with record deficits. Achieving a sustainable fiscal position will be difficult without raising taxes, which is a major political issue for many countries as they seek to strike a balance between fiscal responsibility and economic growth," said UHY International chairman John Wolfgang (pictured).
UHY International, which includes UHY Hacker Young in the UK, studied tax data in 19 countries across its international network and is based on a single, unmarried taxpayer with no children.
If Russia and Dubai are such attractive places to be, why are they not already full of reward-seeking high earners?
Could it be that London has qualities that are worth paying (high taxes) for?
Posted by: MikeO, 14 Jun 2011 | 09:39
I agree with the findings. The Government has failed to realise that many middle class are caught in this net and they are the ones who suffer the most. If these tax payers leave the country then I do not blame them. The worst tax is the IHT threshold which would have been raised as promised by the conservatives but the Lib Dems stopped it. I do not think that the coalition government is doing very much good for this country. Somebody should review the whole tax system and try to work out if this is really affordable by the ones who work hard and pay their way. start with 20% VAT and work your way down the list.
Posted by: Rashmi Raichura, 14 Jun 2011 | 09:56
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