UK Reality Check – Is Gov Brown Listening?

Russ Steele

Governor Brown’s Tax Initiative includes a provision to raise the personal income taxes on the wealthy.  While this provision was found to be popular with the general public by the California Public Policy Institute, it may not be popular with California millionaires.

The UK government passed a surtax on high-income earners, raising the tax to 50%, which too effect at the beginning of the year. It was expected to raise a billion pounds a month. How did that work out?  Tax revenue dropped by more than £500 million pounds.

It turns out that the wealthy in the UK are finding ways to shelter their income when the government drove the cost of taxes high enough to make it worthwhile.  Does Governor Brown thinking the California’s high-earners and millionaires are dumber than those in the UK and they will just accept his new taxes without seeking to shelter there wealth?  If he does, he is stupider than I thought.

Not only will the state lose tax revenue, but it could also loose access to the personal wealth of California’s millionaires that could be invested to spur local economic growth. I wonder if our Governor will take note of the lessons being played out in the UK?  I doubt it, he is a liberal Democrat.

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

3 Responses to UK Reality Check – Is Gov Brown Listening?

  1. Margaret Berger says:

    When taxes on the wealthy go up and they pay less it is not just because they find a way to avoid the taxes. They are also making less if they are making less they are paying less.

  2. RL Crabb says:

    I remember back in the sixties when the British invasion, led by the Beatles, made many Brit musicians wealthy overnight. Some of the most successful, including the Rolling Stones, moved to France to escape the crushing taxes. And, of course, if you’re a baby boomer like me you’ll remember George Harrison’s song, “Taxman”.

    “And my advice for those who die,
    beware the pennies on your eyes”

  3. gjrebane says:

    Now stand by for triple taxes on corporate dividends pushing the effective rate over 60%. And the sheeple will cheer as they get sheared, because that tax increase will seek to beggar almost every family in the country. Democracy on the ascendant while the republic burns.

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