If the HKSAR increased income tax to 50%, capital gains tax on all investment income and added a 12% GST would you still live here ?

[Skyhook]

Hypothetically speaking of course, how many of you would stay ?

And for those that would leave, where would you go and what would your reasons be, financial aspects aside...


I was having this discussion over the weekend and it was quite unanimous if income tax got to the point that say, Australia/NZ suffers, we'd all pack up and find somewhere spacious/clean/comfy to spend our tax dollars in, the price one pays for blue sky lol.

For us it will be France: for a variety of reasons, quality of life being the main reason especially outside Paris. Somewhere coastal, near Normandy, Le Havre etc on 20 acres will do us very nicely.

[Mat]

If the HKSAR increased income tax to 50%, capital gains tax on all investment income and added a 12% GST would you still live here ?

-> in exchange for what?
An increase in Taxes should lead to better medical facilities, schooling.....

So the increase isn't much the issue, the way it is spend and whether it benefits me/others is.

[bryant.english]

bye bye hong kong

[Morrison]

What about dividend income tax?
If they touch that it is either La France or Cyprus, Cyprus levies 15% for military defence though

[HowardCoombs]

I would stay for a few years, till the kids are a bit older and then GTFU.

[muzzdang]

If the HKSAR increased income tax to 50%, capital gains tax on all investment income and added a 12% GST would you still live here ?

-> in exchange for what?
An increase in Taxes should lead to better medical facilities, schooling.....

So the increase isn't much the issue, the way it is spend and whether it benefits me/others is.

It probably is not as simple as that. One of the key driving factors of the HK economy is the low taxes and simple tax system. If GST and CGT was introduced, the entire economy from the retail business (aka mainlanders flocking the branded shops, departmental shops, Sasa etc) will probably vanish, big financial companies will not invest through Hong Kong and it will cease to be a financial centre in Asia.

The fact is we are indirectly paying higher income taxes through ridiculously high property prices, so an increase of personal income taxes would be double whammy.

The questions may be, what would HK be left with?

[Oldtimer]

HK residents cannot leave. They do not have right of abode in a different country.
So your question is only applicable to the expats?
A new Industry will be created: Tax avoidance: Accountants and lawyers will flourish.
Even under present tax laws, you can arrange your affairs, in such a way that you either avoid the tax or pay even below 15%.

Hypothetically speaking of course, how many of you would stay ?

And for those that would leave, where would you go and what would your reasons be, financial aspects aside...


I was having this discussion over the weekend and it was quite unanimous if income tax got to the point that say, Australia/NZ suffers, we'd all pack up and find somewhere spacious/clean/comfy to spend our tax dollars in, the price one pays for blue sky lol.

For us it will be France: for a variety of reasons, quality of life being the main reason especially outside Paris. Somewhere coastal, near Normandy, Le Havre etc on 20 acres will do us very nicely.

[jimbo]

I'd grudgingly move back to uk and claim benefits

[gilleshk]

Easy...bye bye HK in a NY minute

[threelittlepigs]

Plane ticket would be booked to Melbourne.