UK Conservatives: Top Tax Rate Costing Britain Money

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Conservatives in Britain are claiming that a new high tax rate has actually cost their government money.

The London Telegraph reports that 16,000 British citizens declared an annual income of more than a million pounds in the 2009-2010 tax year.

That number fell to just 6,000 after the government introduced the new top tax rate of 50 percent.

Analysts believe many Brits simply moved out of the country to avoid the high taxes. Others found ways to cut their taxable income.

Chancellor of the Exchequer George Osborne, a member of the new Conservative Party majority, announced the top tax rate will be reduced to 45 percent next year for those with annual incomes of 150,000 pounds.

Since that announcement, the number of people making a million pounds a year has gone back up.

Meanwhile, Daily Telegraph columnist Nile Gardiner likened the situation to the fiscal cliff facing the United States.

"Driving many of the country's most successful people, as well as their money, out of the United States is sheer economic suicide," Gardiner wrote.

"As tax rates rise," he warned, "there will be every incentive for overseas businessmen to put their money elsewhere, rather than invest in big government America."

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