Europe is known for its devastatingly high tax rates. So you know that things are bad when Europeans start complaining that they are being taxed too much. In this case, I am referring to the United Kingdom where the government is planning to increase the top income tax rate to 50%. This increase, of course, will hit the British high-achievers.

I mean, we are dealing with a country that already taxed its top income earners at 40% ... close to the United States. The rate was supposed to increase to 45% this coming November, but this rate wasn't going to get the government enough money. So now, this 50% rate will apply to citizens earning more than $217,515 per year. That's the top 1% of taxpayers in the UK.

Great Britain's Alistair Darling says that the reason for these tax increases is so that the government can "help to pay for additional support for people now ..." He also says that "Britain's elite should pay more because their earnings have almost doubled since 1996." The rich should pay their fair share!

So what is going to happen? My guess would be that British producers and achievers will look for greener pastures. There are already talks about fears of "brain drain." Gee, ya think? That's what happens when you decide to tax the tar out of the achievers. They will eventually go somewhere else where they can still be achievers but keep more of the money that they earn.

And when it all is said and done, a report from the Institute of Fiscal Studies said, 'The Government's plans to raise income tax rates for people on incomes above £150,000 are very unlikely to raise the revenue that it has predicted, and indeed more likely to reduce revenue overall." That would be because this tax increase punishes achievement .. and even the Brits should know that you get less of what you punish.