Michael Hiltzik says that California’s millionaires don’t move in response to tax increases. He bases his conclusion on a study by a couple of sociologists, not economists, engaged by the state Franchise Tax Board that purports to prove that millionaires don’t leave after tax increases.
Many of these millionaires either own or manage California businesses and will expand those businesses outside California. In addition, the millionaires will engage in fewer taxable activities, and the projected revenue that Gov. Jerry Brown hopes for will come up short.
Unfortunately, Hiltzik throws raw meat to those legislators and voters who continually attempt to eat the business sector instead of welcoming business to California, creating an environment in which the increased commerce would dramatically increase tax receipts. Yes, even at lower rates.
Until this business-friendly approach becomes prevailing wisdom, we will face repeated budget shortfalls.
Did Hiltzik actually read or consider the tone of his argument in favor of taxing rich people more because they don’t move away so quickly? As if rich people are a crop to be picked?
Thieves think this way regarding their marks; is our government today much better than that?