A very interesting point made in the Economist of 20 September, 2014. The number of people paying income tax is dropping, and this is highly dangerous for national economies. In our ‘farmyard’ video we said that 1% of Americans pay 40% of income taxes. That was then! Today the figure is 46%. In 1979 (just 35 years ago) it was a mere 18%.
We can’t be too smug in the UK either. 1% of workers pay 28% of income tax. In 1979 it was a mere 11%. More than 40% of American households pay NO income tax. In the UK the number of income tax payers has dropped by 2.2 million. And with populist politicians spouting `squeeze the rich` rhetoric, this can only get worse.
Many rich American/British High Net Worth Individuals see these numbers as a wake up call. The way the figures are moving makes low-tax foreign jurisdictions look more and more attractive. If, as we predict in our upcoming book, these HNWIs turn into Golden Geese and fly away, then this will have a hugely disproportionate effect on tax revenue.