The economics of taxing net wealth: A survey of the issues

Arbeitspapier

This paper surveys possible motivations for having a net wealth tax. After giving a short overview over the state of wealth taxation in OECD countries, we discuss both popular arguments for such a tax, as well as economic arguments. It is argued that classical normative principles of taxation known from public economics cannot give a sound justification for a net wealth tax. The efficiency-related effects are also discussed and shown to be theoretically ambiguous, while empirical evidence hints at a negative effect on GDP growth. Finally, it is argued that despite of widespread and persistent lobbying for a revitalization of the net wealth tax, this is unlikely to happen due to political economy constraints.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Freiburger Diskussionspapiere zur Ordnungsökonomik ; No. 12/5

Classification and Topics

• Classification: Wirtschaft ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Personal Income, Wealth, and Their Distributions ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Taxation and Subsidies: Efficiency; Optimal Taxation ; Taxation and Subsidies: Incidence
• Subject: net wealth tax ; wealth ; inequality ; redistribution

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Schnellenbach, Jan
• Event: Veröffentlichung
• (who): Albert-Ludwigs-Universität Freiburg, Institut für Allgemeine Wirtschaftsforschung, Abteilung für Wirtschaftspolitik
• (where): Freiburg i. Br.
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/67482
• Last update: 10.03.2025, 11:43 AM CET