It may as well be. The Labor government in the United Kingdom is seeking to enact a 50% - it needs to be belabored: 50% - income tax on all those earning GBP150,000.

Prior to Margaret Thatcher, Great Britain was suffering chronic high unemployment, a stagnant economy and a brain drain. Thatcher decreased taxes, cut regulation and spending, and by doing so open the door for London to become one of the most dynamic financial centers in the world and for all of the U.K. to thrive.

How fast has Britain forgotten those lessons and intends to once again vote in socialism. The new tax should be termed the “exile tax” or the “brain drain tax” because it will precisely have that affect.

poll of more than 300 entrepreneurs by business advisors Tenon also found that many more may follow in an attempt to escape the 50% rate of income tax, due to be introduced from next April on annual incomes above GBP150,000, with nearly half of the respondents (48%) still deciding what action to take. …Tenon points out that in the last month, high profile names such as the actor Sir Michael Caine and the artist Tracey Emin have threatened to change their tax residency to countries with more favorable tax rates. Popular locations for redomiciling include Monte Carlo, Guernsey, Liechtenstein, and the Cayman Islands. Andy Raynor, Chief Executive of Tenon Group, noted that entrepreneurs are showing their disapproval of the tax measures by “letting their feet do the talking.”

Would you blame them? Why would you invest your money, time and effort only to see the state take away half of it? That is your work and you’re entitled to the overwhelming share of it. The politicos have no right to enact such a burden. Such taxes are illegitimate no matter the democratic means. The legitimacy of the state and its power come not from democratic processes but from the limitation of the power. Taxation without limitation is extortion.

And by driving out entrepreneurs and decreasing the incentive to work the government will probably collect far less than projected if any. No nation grows rich through taxes.

At this time, the British should remember the words of Winston Churchill:

We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.