From the TUC

The 50p tax rate refugees: let ’em leave!

11 May 2009, by Guest in Economics

The City are spreading their usual rubbish about hordes of talented financiers leaving the UK because of the outrageous insertion of fairness into our tax system.   If this really is an effect of the new tax rate then we should applaud it.  I say this not because I think these people unethical, elitist or even because of their role in the debt mania of the last few years, but because they are dinosaurs. 

As I’ve said elsewhere, the era of turbo-charged finance capital is over.  The City will need to radically reinvent itself if it is to generate wealth for the UK economy in the future.  It will need to be much more focused on investment return from long-run growth and real, hard won improvements in productivity not from financiers’ tricks.  It will also need to take real risks with investment in innovation and experimentation not by loading risks onto other parties.

The hedgies, private equity boys and derivatives traders don’t have the experience, skills or inclination to do this sort of work, so the sooner they are cleared out of London the better.  They served their purpose for a while, got very much above themselves and then crashed to earth.  They are no longer the future.

4 Responses to The 50p tax rate refugees: let ’em leave!

  1. Tax Research UK » The 50p tax rate refugees: let ‘em leave!
    May 12th 2009, 8:30 am

    […] The 50p tax rate refugees: let ‘em leave! | ToUChstone blog: A public policy blog from the TUC. […]

  2. Owen Tudor

    Owen Tudor
    May 12th 2009, 8:39 am

    But it is partly about morality too. Hugely rich comedian Ricky Gervais (creator of the wordwide hit The Office) is interviewed in the Financial Times today. He says “I like paying tax. If it wasn’t for the welfare state I wouldn’t be where I am today.” And he adds, rightly, that tax exiles are “unsavoury”.

    Mind you, you can’t trust Gervais not to have his tongue in his cheek (he spent years living down a jokey answer to one of those instant celeb questionnaires: when asked what he would save from his house if it was burning down, he said: “one of the twins”) so I suppose this entry should have a Health Warning!

  3. The 50p tax rate refugees: let ‘em leave! | called2account
    May 12th 2009, 10:20 am

    […] The 50p tax rate refugees: let ‘em leave! | ToUChstone blog: A public policy blog from the TUC. […]

  4. Peter Dwight
    May 18th 2009, 5:37 pm

    Great post man… Love your writing! Can’t wait to see more. Is there a subscribe feature here?