Tuesday, 28 April 2009

Will there be a mass exodus of London's market wizards?

The City boys (London's financial wizards) are not at all happy about the recently announced change to the UK tax code whereby for those earning more than £150K per year (approximately $225,000 in real money) the marginal rate of tax from next April onwards will move from 40% to 50%.

The following quote comes from a column at a UK based financial information site (and thanks to Alex for the tip). The columnist interviewed a City trader who had the following to say about the tax hike:

'The Institute of Fiscal Studies has already told these idiots that raising tax in this way will result in less revenue, not more. They just don't get that market professionals have portable careers. People and firms do not need to be in the UK to ply their trade. What with the further raid on pensions and national insurance, we now have a lousy tax regime to go with the lousy weather and the lousy state of public services. The only reason to stay is the Premier League,' he continued, 'Although, as Wenger has said, all the best players will soon be off to Spain and Italy - where they will pay significantly less tax! London will soon be a place when only crappy football players and modestly-paid back office professionals work'.

While it would be rather "blokey" to agree with such sentiments it is also not blindingly obvious why the average UK citizen would be too concerned about a mass exodus of those with "portable careers" who hold similar views.

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