That pesky Laffer Curve thing again

I don\’t vouch for the figures:

One-in-four hedge fund employees has already left London to move to Switzerland, which is said to have a more stable tax regime, according to consultancy Kinetic partners.

Calculations by the company claim the UK could have already forgone about £500m in tax revenues, based on the 1,000 or so hedge fund managers it says have already left the country.

But if they\’re anywhere near correct then it\’s not immediately obvious that the new 50% tax rate will in fact raise extra revenue, is it?

1 thought on “That pesky Laffer Curve thing again”

  1. The word doing most of the work there is “stable”. I suspect that its not the 50% tax per se, but the continuing talk of windfall and bonus taxes, whether of not they are applied. The continuing banker bashing doesn’t help either.

Leave a Reply

Your email address will not be published. Required fields are marked *