High taxes drive entrepreneurs away

I was half way through posting about this article when my internet died last night.

I thought the Australian summed it up well when it highlighted, "the clear feedback out of London when they increased the top rate of tax to 50 percent is high-income earners are more mobile now than ever before and particularly in our region, Singapore and Hong Kong start to look very attractive."

I know I have spent the last couple of weeks reading up on Singapore and Hong Kong as well as contacted various immigration departments to size up my options because I know that top end taxes in Australia are going to be just like the US and UK, going up.

Already the government is highlighting changes to superannuation for high income earners. The writing seems to be all over the wall, that the wealthy of Australia are about to be squeezed a lot tighter over the next decade.

The REALLY scary signs is the new defense budget plans, which were summarised by the Australian as "the biggest military buildup since World War II."

It would seem despite the fact we are running massive budget deficits we can still afford to spend $100B on a military build up for an invisible threat of war. Of course justifications for such things include border protection, aka stopping a couple of hundred indo boat people trying to get into our country each year - that definitely justifies $100B in warships, subs and fighter jets.

Unless of course governments around the world are starting to think that they can use the same solution to the Great Depression this time around as well...