# name
The tenuous case for an annual wealth tax

# metadata.dc.description.abstract[].value
We explore the case for and against an annual wealth tax as part of the overall
tax mix. Few countries now use wealth taxes, and those that do adopt narrow tax bases. Taxes
on inheritances or bequest are more common, but they generate limited revenue and apply to
relatively few taxpayer. In principle, annual wealth taxes are roughly equivalent to capital
income taxes on the assets to which they apply, although there are some assets for which
wealth taxes might be simpler to implement than capital income taxes. Annual wealth taxes are
distinct in purpose from inheritance taxes which are useful adjuncts to income taxes even if
capital income is exempt. We recount the persuasive arguments for taxing capital income,
albeit at different rates than for other income, and for taxing inheritances regardless of whether
capital income is taxed. We argue that if the desire to tax asset income and wealth transfers is
appropriately addressed by capital income and inheritance taxation, the additional need for an annual wealth tax is minimal and its benefits do not outweigh its administrative costs.

# metadata.dc.source[].value
IEB (Institut d’Economia de Barcelona) – Working Papers

# metadata.dc.title[].value
The tenuous case for an annual wealth tax