Thursday, 17 June 2010

People don't like paying tax!

(Via) I find an interactive map which tracks the movement of Americans around their country. And the interesting thing is the migration from blue states to red. The reason is state income taxes. Basically Americans can flee states with high income taxes and move to get better standards of living by paying less tax.

As can Europeans.

Of course this will come as a surprise to socialists who think that the lovely boondongles of free at the point of delivery healthcare and education are sufficient to make people want to pay more tax. That might wash for some idiots committed to their beliefs (though I'll be surprised if his or anyone else's tax return actually contains a voluntary extra payment). But most people want to pay as little as possible.

The people with the most ability to move are, of course, the wealthy. The wealthy, rather than "taking more out" of society, actually pay disproportionate amounts of tax and use services provided much less than their poorer neighbours. High marginal tax rates push these people away, meaning there is in the long-run less money to fund the boondongles socialists so love.

Economic freedom is an important component of freedom, and, yes, a well designed healthcare system (ie not the UK or US) is an important part of economic freedom. But economic freedom also means keeping taxes as low as possible, in order to fund the things that the state does provide best, but let the rest of the people get on with what ever they want to do with the rest. Otherwise, People tend to move, by whatever means necessary from places of high state control to places of low control.

In Britain, socialist fiefdoms like the North of England and the West of Scotland are seeing their brightest and best move south, leaving a broken rump of state-dependent people behind. Socialist 'paradises' like the German Democratic Republic for example had to build walls to keep people in, an option not open to California or Glasgow East.

The message is simple. The more you allow other people to become a burden on those who pay for it, the more resentful those who pay will become. The British welfare state is now too big, too generous and too unquestioning for the people who are asked to fund it to do so willingly. If you provide an opportunity to escape - as millions of Britons do each year to southern France and Spain, where the state intrudes much less rudely on one's life, they will take it.

If you turn a free, prosperous country into an overtaxed panopticon staffed with ghastly bullying state employees in high-viz vests; rich, productive people will leave. The fact that the UK remains a better place to live than former communist countries in Eastern Europe or War stricken African hell-holes like Somalia where most of New Labour's unchecked immigration is from, is not exactly a ringing endorsement of the experiment in soft totalitarianism.

Low, fair taxes. Less 'punish the rich rhetoric' and fewer state prod-noses. And, if you're George Osborne, don't raise CGT or abolish higher rate pension tax relief. It may (or probably not) get you a favourable headline in the Daily Mirror, but will only swell the exchequer of Switzerland.



3 comments:

Rightwinggit said...

Boondoggle.

Daed Parrot said...

You made an excellent point when you said:
"In Britain, socialist fiefdoms like the North of England and the West of Scotland are seeing their brightest and best move south, leaving a broken rump of state-dependent people behind. Socialist 'paradises' like the German Democratic Republic for example had to build walls to keep people in, an option not open to California or Glasgow East."

SSH said...

Ummm.... since when is tax higher in Scotland or North England than anywhere else in the UK??? And millions leaving UK each year to go to France or Spain... are you sure that's not, like, becasue of the weather... and for, like, a holiday? I'm pretty sure that millions permannently leaving every year would have been a news story somewehre. You may have a valid point here somewhere but you've discredited yourself by using Daily Mail style hysteria and hyperbole in this post.

There was an error in this gadget