by @@sfliberty
In 1966, George Harrison got his paycheck.
He'd earned £100. The British government took £95.
His reaction was to write "Taxman," the most libertarian protest song in rock history.
But the story behind that 95% rate reveals why Bitcoin matters more than most people realize. 🧵
When WWII ended, Britain's top tax rate sat at 97.5%.
This was a wartime emergency measure. You'd expect it to drop with peace.
Instead, Labour won a landslide in 1945 and decided: "Let's keep this. Forever."
The war was over. The confiscation was just beginning.
Within three years (1945-1948), Labour nationalized:
Coal mines. Railways. Steel industry. Electricity and gas. Bank of England. Hospitals and healthcare.
Someone had to pay for all this. Every industry takeover required massive compensation to former owners, bloated new bureaucracies, subsidies to cover losses, and pension obligations.
Before WWI, government spending was 10% of GDP, and before WWII, it was under 30%. The war pushed it to 40%, and Labour made sure it never came back down.
Each new government program created new constituencies demanding benefits, new bureaucrats defending their jobs, new "rights" that couldn't be taken away.
Even Conservative governments (1951-1964) barely touched the tax rates. Why? They'd have to cut programs. Political suicide.
So the 95% rate stayed. For decades.
Back to "Taxman":
"Let me tell you how it will be / There's one for you, nineteen for me"
"Should five percent appear too small / Be thankful I don't take it all"
George wasn't exaggerating. He was documenting reality.
— Income tax: 95%.
— Purchase tax: up to 66% on "luxury" goods.
— Estate tax: 80%.
You couldn't escape it. The state owned your labor.
What did the rich do?
They set up offshore companies. Moved money to tax havens. Hired expensive lawyers and accountants. Created complex trust structures.
By 1969, The Beatles had become tax exiles. But this escape route was only available to the wealthy. If you weren't rich, you were trapped.
This pattern repeats throughout history.
Roman patricians moved wealth to provinces. Medieval merchants used Venetian banking secrecy. 1970s Brits fled to Swiss accounts and Monaco residency. Modern billionaires use Caribbean trusts and Singapore citizenship.
The system works like this: Government confiscates → Rich escape → Middle class pays the bill.
Until now, the exit door required wealth.
Expensive lawyers. Offshore bank accounts. Second citizenships. Million-dollar minimums.
The Beatles needed teams of professionals to escape. Working-class Brits had no options.
But Bitcoin changed the equation entirely.
When WWII ended, Britain's top tax rate sat at 97.5%.
This was a wartime emergency measure. You'd expect it to drop with peace.
Instead, Labour won a landslide in 1945 and decided: "Let's keep this. Forever."
The war was over. The confiscation was just beginning.
Within three years (1945-1948), Labour nationalized:
Coal mines. Railways. Steel industry. Electricity and gas. Bank of England. Hospitals and healthcare.
Someone had to pay for all this. Every industry takeover required massive compensation to former owners, bloated new bureaucracies, subsidies to cover losses, and pension obligations.
Before WWI, government spending was 10% of GDP, and before WWII, it was under 30%. The war pushed it to 40%, and Labour made sure it never came back down.
Each new government program created new constituencies demanding benefits, new bureaucrats defending their jobs, new "rights" that couldn't be taken away.
Even Conservative governments (1951-1964) barely touched the tax rates. Why? They'd have to cut programs. Political suicide.
So the 95% rate stayed. For decades.
Back to "Taxman":
"Let me tell you how it will be / There's one for you, nineteen for me"
"Should five percent appear too small / Be thankful I don't take it all"
George wasn't exaggerating. He was documenting reality.
— Income tax: 95%.
— Purchase tax: up to 66% on "luxury" goods.
— Estate tax: 80%.
You couldn't escape it. The state owned your labor.
What did the rich do?
They set up offshore companies. Moved money to tax havens. Hired expensive lawyers and accountants. Created complex trust structures.
By 1969, The Beatles had become tax exiles. But this escape route was only available to the wealthy. If you weren't rich, you were trapped.
This pattern repeats throughout history.
Roman patricians moved wealth to provinces. Medieval merchants used Venetian banking secrecy. 1970s Brits fled to Swiss accounts and Monaco residency. Modern billionaires use Caribbean trusts and Singapore citizenship.
The system works like this: Government confiscates → Rich escape → Middle class pays the bill.
Until now, the exit door required wealth.
Expensive lawyers. Offshore bank accounts. Second citizenships. Million-dollar minimums.
The Beatles needed teams of professionals to escape. Working-class Brits had no options.
But Bitcoin changed the equation entirely.
