Top Rate Tax Band Causing Top Talent To Leave

Top Rate Tax Band Causing Top Talent To Leave

June 14th 2011 11:46 pm

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The introduction of the top rate fifty percent tax band has resulted in Britains highest earners paying more tax than 13 othe ...

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The introduction of the top rate fifty percent tax band has resulted in Britains highest earners paying more tax than 13 other major economies. Those earning more than £122,000 would take home 60.9 percent of their income after tax - this differs from Russia where 87 percent is retained, 80.4 percent in Egypt and 100 percent in the tax free haven of Dubai. Commentators note that the high tax rates are causing a 'brain drain', with top talent leaving the country to get more value for money. Moving away from higher earners, people earning less than £15,242 per annum also rank seventh highest for the amount of tax they pay. They retain 83.2 percent of their income, whereas in Ireland they would keep 95.7 percent and over 90 percent in both Japan and the US. Interesting figures to note:
  • From the top 20 world economies, only Germany, India, France, Italy, Estonia and Mexico are ranked higher than Britain for low earners tax and social security contributions.
  • Low paid workers in Germany keep just 72.6 percent of their income after taxes, in India this is 74.7 percent and in France this is 75 percent.
  • Italy charges the highest rate of tax for higher earners, with people earning more than £122,000 keeping just 54.1 percent of their earnings. In the Netherlands this is 54.7 percent, and Ireland and Germany at 56 percent.

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