Tax resistance movement

What happened: A 'tax resistance' movement is gaining traction among Americans, driven by TikTok videos like that of Chicago attorney Rachel Cohen, who publicly declared she won't pay her $8,000 federal income tax. Simultaneously, a 'tax the rich' initiative is gathering signatures in California, while UK charities urge Labour's Rachel Reeves to tax companies profiting from the Iran conflict to fund cost of living support. Meanwhile, UK millionaires show willingness to pay more tax, according to a report.

Market impact: These developments could pressure governments to reconsider tax policies, potentially impacting financial services and wealth management sectors. Companies with significant exposure to high-net-worth individuals, like luxury goods retailers and private banks, may face valuation repricing. In the UK, firms linked to Iran could face higher taxes, affecting their earnings.

What to watch next: The IRS's response to the 'tax resistance' movement, particularly any enforcement actions or policy changes (Q3 2023). The California 'billionaire tax' initiative's progress and potential impact on state and national tax policies (November 2022). UK Labour Party's stance on taxing war-profiteering companies and its influence on Reeves' policy decisions (Q3 2023).