Though it has been tried many times the world over, Great Britain is considering a supplemental tax on the wealthy. If the goal is to reduce the number and wealth of wealthy Britons, the tax will be a success. Every time the wealthy have been singled out for special taxes, the taxing authority has found itself surprised by lower revenues than expected and fewer wealthy people to tax.
At some point this outcome should cease to be a surprise.
As to why taxes on the wealthy never work the way they are sold, it is really very simple. People like to keep what they perceive as theirs. Doesn't matter if you believe this is a moral, ethical, desire, it is a true and common desire. Combine this desire with the reality that the most wealthy in any jurisdiction possess substantial ability to legally move their wealth and/or themselves out of any tax jurisdiction. Presto chango! Wealth rapidly moves out of areas where it is made to feel unwelcome.
Such relocation of wealth has shown itself to be true regardless of the size of the taxing authority. Cities, counties, districts, states, countries, trading blocks - all have been "surprised" by the unsurprising.
If this proposal is implemented, Great Britain will see a decrease in the amount of personal wealth possessed by Britons and subject to British taxing authority. They will very likely see a decrease in the number of subjects that possess such wealth.
Of course, that just may very well be the point.
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