UK Millionaires Flee Country Over Tax Hikes, British Treasury Loses Billions

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Shortly after the United Kingdom’s latest big tax hike, Great Britain’s millionaires started voting with their feet. And the result hasn’t been pretty for the British treasury.

Raising the country’s top income tax rate to 50 percent has cost the UK 7 billion pounds — about $11.2 billion — since 2010, according to London’s Daily Telegraph newspaper, as wealthy taxpayers have intentionally worked less, deferred income to future years, moved their earnings overseas or left the country entirely.

Whatever the reason, the British treasury has been the big loser.

“Tax paid by the top earners fell from 13.4 billion pounds before the top tax rate came in to 6.5 billion pounds in 2010/11,” The Daily Mail reported on Tuesday.

Prime Minister Gordon Brown pushed the tax increase through Parliament before the 2010 elections swept his liberal Labour Party from power. During the 2009-2010 tax year, more than 16,000 Britons claimed annual incomes of more than 1 million pounds. After the tax increase, that number plunged to just 6,000.

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Forget Spain, Now Italy Seen As Needing Bailout

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Even as markets have been focused on a potential bailout for Spain, analysts say Italy, which is heading for a protracted recession, may also need aid in 2013.

Although Mario Monti’s technocrat government forecasts the Italian economy will decline only marginally in 2013, analysts at Citi predict a steeper contraction of 1.4 percent, after a 2.3 percent fall this year. Meanwhile, the Organization for Economic Co-Operation and Development lowered its 2013 estimate for Italy on Tuesday to a one percent contraction.

On top of the economic weakness is growing political uncertainty. Monti’s term ends next year and former Prime Minister Silvio Berlusconi, who has lashed out at the government’s austerity measures, has hinted he may run for election again.

“We still see as our baseline scenario that Italy will likely be forced to ask for an international bailout at some point in 2013,” said Citi Analyst Giada Giani in a report on the country.

“Italian economic fundamentals have not really improved, despite some improvement in market conditions. The negative feedbacks from fiscal austerity on growth have been severe, as the ability of the private sector to absorb fiscal tightening by lowering its saving rate is limited.”

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Treaty Threatens U.S. Sovereignty

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WASHINGTON – Former Sen. Rick Santorum, a former GOP presidential candidate and the father of a handicapped child, joined Sen. Mike Lee, R-Utah, in denouncing the United Nations Convention on the Rights of Persons with Disabilities, saying it would open a “Pandora’s box” of legal interpretations resulting in a “direct assault on us and our families.”

In a press conference on Capitol Hill Monday, both Santorum and Lee said Articles 4 and 7 of the convention, which reference the rights of disabled children, represent a threat to both national sovereignty and the rights of families to make decisions on how to raise their own children.

“Our concerns with this convention have nothing to do with a lack of concern with the rights of persons with disabilities,” said Lee. “They have everything to do with protecting national sovereignty, protecting the interests of parents … and the interests of families.”

Article 4 of the convention compels member states to embrace “economic, cultural and social rights” that are rooted in the concept that government creates rights, as contrasted with the uniquely American view that rights are inalienable and God-given.

This is, Lee explains, “unknown in our legal system” as it presupposes that the state, not God, is the origin, of our rights.

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U.S. Treasury Declines to Name China Currency Manipulator

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China isn’t a currency manipulator under U.S. law, though the yuan “remains significantly undervalued” and needs to rise further, the Treasury Department said.

China “has substantially reduced the level of official intervention in exchange markets since the third quarter of 2011,” the Treasury said in a statement accompanying its semi- annual currency report to Congress yesterday. The yuan has gained 9.3 percent in nominal terms and 12.6 percent in real terms against the dollar since June 2010, the Treasury said.

“It appears that the strategy of the last two administrations to use diplomacy rather than confrontation in dealing with the yuan’s value is having some positive results,” William Reinsch, president of the National Foreign Trade Council, a Washington-based business group, said in an e-mail after the report. “There is clearly room for further appreciation, however.”

In declining to brand China a manipulator, the Treasury cited the reduced intervention and “steps to liberalize controls on capital movements, as part of a broader plan to move to a more flexible exchange-rate regime.” The U.S. hasn’t designated another nation since 1994, when it named China.

Critics of China’s exchange-rate policies, including former Republican presidential candidate Mitt Romney, say the nation deliberately suppresses the value of its currency, making its goods cheaper in overseas markets and costing jobs in the U.S.

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Corporate Tax Cuts Enacted: Economic Stimulus Old-School-Capitalist Style . . . in China!

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photo credit: wisegie

China’s new round of structural tax cutting is likely to benefit more than 900,000 enterprises nationwide, according to a working conference held here on Monday to discuss the country’s piloting of replacing business tax with a value-added tax (VAT).

About 710,000 enterprises have been covered by the tax-cutting program, and another 200,000 will be included starting from Dec.1 this year, according to the meeting jointly held by the Ministry of Finance and the State Administration of Taxation.

Shanghai piloted the program on Jan. 1 this year in an effort to decrease the overall tax burden and boost the transportation and service sectors. The pilot was then expanded to provincial regions including Beijing, Guangdong and Zhejiang later this year . . .

The reform has effectively promoted the growth of tertiary industry, especially the service sector, and encouraged the development of small and micro-sized enterprises, those present at the meeting agreed.

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China Lands J-15 Jet on Liaoning Aircraft Carrier

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China has successfully landed a jet fighter on its new aircraft carrier for the first time, officials say.

A Chinese-made J-15 fighter landed on the 300m (990ft) former Soviet carrier during recent exercises, China’s defence ministry said on Sunday.

The Liaoning, China’s first aircraft carrier, entered into service in September.

China says the vessel has had extensive sea trials and will increase its capacity to defend state interests.

Analysts say the aircraft carrier will allow Beijing to help project its military might in territorial disputes.

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UK Foster Couple Lose Children for Being Members of Conservative Party (+video)

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A UK couple had their three foster children taken away after social workers decided that the couple’s support for the supposedly “racist” policies of the UK Independence Party (Ukip) made them “unsuitable” caregivers, The Telegraph reports.

For those of you who are unfamiliar with the Ukip, it’s the conservative wing of British politics. If you want an understanding of the group’s principles, look no further than Nigel Farage, founding member and party leader:

“It is total and utter failure. This ship, the euro Titanic has now hit the iceberg and sadly there simply aren’t enough life boats,” said Farage, an infamously skeptical critic of the eurozone, to the European Parliament.

The Ukip advocates lower taxes, limited government, freer markets, and immigration reform. However, to certain social workers in the Labour-controlled Rotherham borough, supporting the above makes you an “unsuitable” foster parent.

The parents claim they were made to feel like criminals and that they had a “black mark” on them for supporting the conservative group. And now it has culminated in the loss of their foster children, one boy and two girls.

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Kremlin Leveraging Energy Exports to Europe

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WASHINGTON – Russian agreement to a reduced natural gas price in a deal with Poland helps ensure Moscow’s near-monopoly over Europe’s natural gas supply and the enormous political leverage that the Kremlin can exert as a consequence, according to a report from Joseph Farah’s G2 Bulletin.

Gazprom, which has a near-monopoly on oil production and a full monopoly on natural gas exports, is viewed by experts as an effective tool of the Kremlin to not only be a weapon for political leverage but actually to greatly influence events in Europe.

Moscow’s strategy has been to undertake long-term contracts with lower natural gas prices. This has been aimed at countries which the Russians regard as strategic, particularly Germany.

However, a reaction is setting in among these countries. They don’t like the control that it gives to Gazprom and have decided to take the Russian monopoly to court.

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Ugandan President Repents of Personal, National Sins

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Should a president lead citizens in a national prayer of repentance? Uganda’s Christian president believes so.

The Ugandan newssite New Vision reports President Yoweri Museveni celebrated Uganda’s 50th anniversary of independence from Britain at the National Jubilee Prayers event by publicly repenting of his personal sin and the sins of the nation.

“I stand here today to close the evil past, and especially in the last 50 years of our national leadership history and at the threshold of a new dispensation in the life of this nation. I stand here on my own behalf and on behalf of my predecessors to repent. We ask for your forgiveness,” Museveni prayed.

“We confess these sins, which have greatly hampered our national cohesion and delayed our political, social and economic transformation. We confess sins of idolatry and witchcraft which are rampant in our land. We confess sins of shedding innocent blood, sins of political hypocrisy, dishonesty, intrigue and betrayal,” Museveni said.

“Forgive us of sins of pride, tribalism and sectarianism; sins of laziness, indifference and irresponsibility; sins of corruption and bribery that have eroded our national resources; sins of sexual immorality, drunkenness and debauchery; sins of unforgiveness, bitterness, hatred and revenge; sins of injustice, oppression and exploitation; sins of rebellion, insubordination, strife and conflict,” Museveni prayed. Next, the president dedicated Uganda to God.

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Protests Rock Egypt After Morsi Seizes New Powers (+video)

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Protesters stormed the headquarters of the Muslim Brotherhood’s party in Alexandria on Friday, throwing chairs and books into the street and setting them alight, after the Egyptian president granted himself sweeping new powers.

Supporters of Egyptian President Mohamed Morsi and opponents also threw stones at each other near a mosque in the city, Egypt’s second largest, a witness said.

Two cars had glass smashed as the clashes moved away from the area.

In Port Said, another port on the Mediterranean, hundreds of protesters gathered outside the Brotherhood’s Freedom and Justice party headquarters and pelted it with rocks. Some tried to storm it but did not enter, another witness said.

In Cairo, thousands demonstrated against the decree issued on Wednesday night.

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