Editorial Board
Taxes on Millionaires Make Great Politics, Poor Economics
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In this age of austerity, many governments are looking for ways to fill gaps in their budgets by taxing the rich more. These proposals make for great politics, but terrible economics.
This week, the U.K.’s coalition government will produce its budget for the next year. Among proposals being discussed between the coalition partners is a so-called mansion tax -- an annual 1 percent levy on homes worth more than 2 million pounds ($3.2 million).