On 3/24/2010, UK’s Prime Minister Gordon Brown’s ruling Labour Party government used its last budget weeks before a national election, to raise taxes on the wealthy. It is a move to help offset breaks given to lower income earners. For example, the elimination of home purchase duties for first time home buyers, will be offset by a doubling in the stamp duty to 5% for properties costing over 1 Million pounds.
Another example is Treasury chief Alistair’s announcement of a significant income tax increase and reduced personal allowances on those earning more than 150,000 pounds a year, while income tax increases would not affect those earning less than 25,000 pounds a year.
This comes only a few months after Oregon Legislature (in the U.S.) approved an increase to taxes on income upward of $125,000, a measure elected by the Oregon voters to tax the wealthy.
This “take-from-the-rich and give-to-the-poor” trend can be expected to continue in the foreseeable future on a global scale, as a countries and individual states/provinces attempt to bandage their negative budgets (in deficit) and satisfy the sense of entitlement that is so widespread today (which is a major contributing factor to the financial crisis).
What ever happened to being rewarded for hard work?
Thanks & Happy Investing!
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