Results are out! Find what you need...fast. Get quick advice or join the chat
Hey there Sign in to join this conversationNew here? Join for free

Why are the rich not flocking to Macedonia, Kazakhstan, Egypt or Jamaica?

Announcements Posted on
One quick question - from of our list, who would you most like to see on TSR doing a Q&A? 23-09-2014
Complete this short survey for a chance to win an iPad mini! 22-09-2014
    • Thread Starter
    • 1 follower
    Offline

    ReputationRep:
    I don't get it, it makes no sense. The top rate of income tax that you would pay in those countries are 10%, 10%, 20% and 5% respectively.

    We even have empirical evidence that by lowering your top rate of income tax, you get economic growth and investment.

    GDP per capita: (CIA World Factbook)

    Macedonia 85th
    Kazakhstan 74th
    Egypt 109th
    Jamaica 95th

    If I was a rich person here I'd be gone in a flash, having to pay 50% tax, next year it'll be 45% but still, it dwarfs what I'd have to pay there. Why is there not an exodus? People could just leave here and go over there and take up the job they had here. This is why we need to be very careful about penalising and stigmatising the bankers. British financial services helped make this country great. If we're too tough on them, they'll just leave and go to one of those countries. Any tougher and we'll have a mass exodus.

    The job creators too, Simon Cowell, Bob Diamond, Alan Sugar, James dyson etc. there comes a point when you just get in the huff if people are taxing you too much and think what's the point and leave. These people could all be going if we don't lower taxes. Why else do they work? If the government is taking more than half what you earn, there is no incentive to work. These people will just stop working and leave if we're not careful.
    • 2 followers
    Offline

    ReputationRep:
    You do realise that they don't actually pay the 45% rate, don't you?
    • 0 followers
    Offline

    ReputationRep:
    Because it would cost as much as you are paying in tax to set yourselves up in any of those countries with a comfortable life, as you would expect in Britain or America, and you would still lack the benefits those taxes give you i.e. police, ambulance if you desperatly require such.
    • 19 followers
    Offline

    ReputationRep:
    Because part of what you pay for in your taxes, is the functioning institutions that government provides, that enables you to actually MAKE money. The UK's not perfect but compared to most countries it's one of the best for having free and functioning markets and strong protection of property rights, and you know what tax you have to pay and can get accountants to help you minimise it.

    In a lot of developing countries, every time you deal with officials you have to pay them a bribe to get things done, so government leaches unofficial tax off you in unpredictable ways. Also when there are not as effective rules of law to protect your property you may have to pay protection money to use informal organised crime to protect you from criminals taking stuff off you.

    Countries like Switzerland, Hong Kong, Singapore are better for seeking lower tax...they have good and functioning institutions, although it may not necessarily be cheaper to live overall, as cost of living can be very high. In Switzerland for instance you pay lower tax but once you have paid health insurance and the cost of rent/mortgage you might be less well off than you would have been in London.
    • 2 followers
    Offline

    ReputationRep:
    Those places have a vastly different culture to anywhere in Europe. It's one thing moving from, say, here to France, it's another entirely moving to Kazakhstan. There are also going to be less money-making opportunities in those types of countries.
    • 3 followers
    Offline

    ReputationRep:
    Because there aren't a whole lot of jobs for investment bankers and company execs in Jamaica or Macedonia. British taxes, particularly corporate ones, are actually pretty low compared to other nations with similar economies.
    • 12 followers
    Offline

    ReputationRep:
    Because places like Luxembourg and Singapore do tax havens that are almost as cheap, but many magnitudes better in terms of quality of life?
    • 11 followers
    Offline

    ReputationRep:
    Haven't the already flocked to the UAE? Where you don't pay any tax?
    • 8 followers
    Offline

    ReputationRep:
    (Original post by Ocassus)
    Because places like Luxembourg and Singapore do tax havens that are almost as cheap, but many magnitudes better in terms of quality of life?
    If you've got money, the quality of life in Kazakhstan is as good as anywhere else you could name.
    • 1 follower
    Offline

    ReputationRep:
    (Original post by 122025278)
    I don't get it, it makes no sense. The top rate of income tax that you would pay in those countries are 10%, 10%, 20% and 5% respectively.

    We even have empirical evidence that by lowering your top rate of income tax, you get economic growth and investment.

    GDP per capita: (CIA World Factbook)

    Macedonia 85th
    Kazakhstan 74th
    Egypt 109th
    Jamaica 95th

    If I was a rich person here I'd be gone in a flash, having to pay 50% tax, next year it'll be 45% but still, it dwarfs what I'd have to pay there. Why is there not an exodus? People could just leave here and go over there and take up the job they had here. This is why we need to be very careful about penalising and stigmatising the bankers. British financial services helped make this country great. If we're too tough on them, they'll just leave and go to one of those countries. Any tougher and we'll have a mass exodus.

    The job creators too, Simon Cowell, Bob Diamond, Alan Sugar, James dyson etc. there comes a point when you just get in the huff if people are taxing you too much and think what's the point and leave. These people could all be going if we don't lower taxes. Why else do they work? If the government is taking more than half what you earn, there is no incentive to work. These people will just stop working and leave if we're not careful.
    Because there are tax havens much closer to here which are much nicer places to live perhaps?
    • 1 follower
    Offline

    ReputationRep:
    (Original post by Astronomical)
    If you've got money, the quality of life in Kazakhstan is as good as anywhere else you could name.
    But you don't want to be a very rich person among lots of poor people. It's much nicer to live among people just like you. Living in a big house on a street with lots of big houses is better than living in a big house on a street with council houses and tiny terraced houses.

    Plus, London is just a 2 hour flight from Monaco.
    • 17 followers
    Offline

    ReputationRep:
    Not everything is about money.
    • 8 followers
    Offline

    ReputationRep:
    (Original post by fudgesundae)
    But you don't want to be a very rich person among lots of poor people. It's much nicer to live among people just like you. Living in a big house on a street with lots of big houses is better than living in a big house on a street with council houses and tiny terraced houses.

    Plus, London is just a 2 hour flight from Monaco.
    Oh, but you've not seen my friends house in Kazakhstan. It looks like a boutique hotel inside, if not better. In fact he showed me a picture when they had a 6ft christmas tree up that looked miniature compared to the height of the ceiling. :coma:
    • 1 follower
    Offline

    ReputationRep:
    (Original post by Astronomical)
    Oh, but you've not seen my friends house in Kazakhstan. It looks like a boutique hotel inside, if not better. In fact he showed me a picture when they had a 6ft christmas tree up that looked miniature compared to the height of the ceiling. :coma:
    I didn't contest that you could have the same extravagant lifestyle, merely that it is much nicer to have that lifestyle amongst people in the same position as you.
    • 8 followers
    Offline

    ReputationRep:
    (Original post by fudgesundae)
    I didn't contest that you could have the same extravagant lifestyle, merely that it is much nicer to have that lifestyle amongst people in the same position as you.
    Meh, as much as I'd rather have a penthouse in Knightsbridge (:drool:) they cost about £10million () so I'd probably go for living like a King in Kazakhstan. Even so, I disagree with your premise, given the extremely limited communication people tend to have with their neighbours nowadays.
    • 3 followers
    Offline

    ReputationRep:
    You are unbelievably naive.

    Life isn't just about tax you know. These rich people do have families and jobs, they cannot just get up and go when they spot a higher disposable income elsewhere. What about the quality of life? Social aspect? Economic climate? Political stability? There are a million and one factors to consider other than tax when relocating.
    • 1 follower
    Offline

    ReputationRep:
    (Original post by 122025278)

    We even have empirical evidence that by lowering your top rate of income tax, you get economic growth and investment.
    What empirical evidence? This is always used to justify tax rates for the rich, but never seen any convincing evidence.
    • 5 followers
    Offline

    ReputationRep:
    See if there's a mass exodus if/when the government starts closing the 1% jimmy carr loopholes. :rolleyes: tbh there's certain other things that go along with the sort of country where you get arrested for voting the 'wrong way' in the eurovision.
    • 3 followers
    Offline

    ReputationRep:
    (Original post by 122025278)
    I don't get it, it makes no sense. The top rate of income tax that you would pay in those countries are 10%, 10%, 20% and 5% respectively.

    We even have empirical evidence that by lowering your top rate of income tax, you get economic growth and investment.

    GDP per capita: (CIA World Factbook)

    Macedonia 85th
    Kazakhstan 74th
    Egypt 109th
    Jamaica 95th

    If I was a rich person here I'd be gone in a flash, having to pay 50% tax, next year it'll be 45% but still, it dwarfs what I'd have to pay there. Why is there not an exodus? People could just leave here and go over there and take up the job they had here. This is why we need to be very careful about penalising and stigmatising the bankers. British financial services helped make this country great. If we're too tough on them, they'll just leave and go to one of those countries. Any tougher and we'll have a mass exodus.

    The job creators too, Simon Cowell, Bob Diamond, Alan Sugar, James dyson etc. there comes a point when you just get in the huff if people are taxing you too much and think what's the point and leave. These people could all be going if we don't lower taxes. Why else do they work? If the government is taking more than half what you earn, there is no incentive to work. These people will just stop working and leave if we're not careful.
    Surely this just proves that there is no incentive to leave due to high taxation?

    Anyway, nobody gives 50% or more of what they earn, tax bands don't work like that.
    • 3 followers
    Offline

    ReputationRep:
    (Original post by Joinedup)
    See if there's a mass exodus if/when the government starts closing the 1% jimmy carr loopholes. :rolleyes: tbh there's certain other things that go along with the sort of country where you get arrested for voting the 'wrong way' in the eurovision.
    It won't matter anyway, even if they do all leave, since they weren't paying tax in the first place!

Reply

Submit reply

Register

Thanks for posting! You just need to create an account in order to submit the post
  1. this can't be left blank
    that username has been taken, please choose another Forgotten your password?
  2. this can't be left blank
    this email is already registered. Forgotten your password?
  3. this can't be left blank

    6 characters or longer with both numbers and letters is safer

  4. this can't be left empty
    your full birthday is required
  1. By joining you agree to our Ts and Cs, privacy policy and site rules

  2. Slide to join now Processing…

Updated: July 2, 2012
New on TSR

TSR Freshers' blogs 2014

Read what TSR's freshers have to say as they head off to uni

Article updates
Useful resources
Reputation gems:
You get these gems as you gain rep from other members for making good contributions and giving helpful advice.