Why are U.S. billionaires absconding for London? The tax rate there is substantially higher for the wealthy than in the U.S., clocking in at 50%. But who cares, says Edgar Bronfman, heir to the Seagram fortune and who also belongs to one of the Jewish world’s most dedicated philanthropic families. He’s movin up and out: Bronfman will move his family of six from New York to London where he will take over Warner Music, the world’s third largest music company.
From the Times online:
Madonna may have rediscovered her appetite for the Big Apple, but the American media mogul who runs her former record company has decided that life may be a little better on this side of the Atlantic.
Undeterred by the rise in the higher rate of income tax to 50 per cent, Edgar Bronfman, the billionaire heir to the Seagram fortune and the chief executive of Warner Music, is leaving his native New York for a house in Kensington, West London, with his wife, Clarissa, and four young children from his second marriage.
He plans to run Warner Music — the world’s third-largest music company, home to Green Day and R.E.M — from both London and New York, in a move that is a coup for the British capital, which had been losing ground to its American rival as the City struggles amid the credit crunch.
Mr Bronfman said that his principal reason for moving was to give his children some experience of life outside the United States and he plans to stay in the UK “for a period of one or two school years”. His presence will help to boost Warner’s faltering British operations, which have performed worse than its American business.