Rich Not Leaving In Droves

When Phil Collins threatened to move abroad if his taxes were raised there was a whip around to pay for his plane ticket but many rich and famous people threaten to take their millions elsewhere and the Financial Times had a great article which looked at if they actually did, and found that of the 4200 who did leave Britain last year, hardly any went due to tax increases.
With Labour now in power and despite warning they will raise some taxes and crack down on non-dom rules, there was talk in the right wing media of an 'unprecedented number' of millionaires moving their bank accounts abroad, but are they?  
The London School of Economics finds that the rich are, in fact, very unlikely to relocate because of tax rises and based on interviews with high-net-worth individuals, the academics at LSE found that the rich people stay because tax havens are just too boring for the rich to seriously consider.
Andy Summers, one of the authors of the report, says: 'Of the people we interviewed for this research, not one stated that they were planning to emigrate or immigrate for tax reasons. In fact, the vast majority of interviewees were clear that they would never consider moving for tax reasons'.
So why then, is there the perception that higher taxes equals the taxes relocating and costing the nation hundreds of millions in tax dues?
'Good PR' said one wealth manager, ' It's meant as a deterrent, a threat to governments that they could lose valuable tax receipts if they try to make life more difficult for the rich and perpetrated by the right wing media who are owned by multi millionaires and have a vested interest warning that the rich will leave in their droves'.
The new Labour are set to raise Capital Gains and Inheritance tax which will hit the wealthy while Income Tax, National Insurance and VAT which hits everybody will remain unchanged so maybe finally, the ones with the broadest shoulders will be asked to bear the brunt of the economic debacle left by the Conservatives and as an added bonus, Phil Collins wont be returning anytime soon. Wahey!