Taxes: It Doesn't Pay to Have Money

As part of its continuing efforts to bolster the pound, Britain last month imposed a severe tax on all investment income exceeding $7,200. Though Brit ons have grown accustomed to bitter fiscal medicine, that dose has been particularly hard to swallow. Reason: the special one-year measure carries the country's progressive taxation to the point of confiscation, resulting in a tax bite that can, in higher income brackets, amount to more than 100%.

The new levy, which applies retroactively to the fiscal year that ended last week, is expected to raise $240 million of the $4...

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