25% Wealth Tax

Extracted Attributes

• Tax Base

  Entity's net worth, holdings of assets, total income including accrued capital gains on assets not yet sold

• Tax Type

  Wealth tax, Capital tax, Equity tax, Net wealth tax, Unrealized Gains Tax

• Proposed Rate

  25%

• Included Assets

  Cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, personal trusts, accrued capital gains

• Critics' Arguments

  Negative economic effects, long-run GDP declines (2-5%), loss of hundreds of thousands of jobs, loss of other tax revenue, liquidity challenges for founders, capital flight, potential unconstitutionality, double/triple taxation, confiscation of interest earnings

• Excluded Liabilities

  Mortgages, other debts

• Proponents' Argument

  Reduce income inequality

• Target Group (Proposed)

  Taxpayers with over $100 million of net assets (approximately 2,600 ultra-wealthy individuals)

• Historical Context (OECD)

  Down from 12 countries in 1990 to 5 of 36 OECD countries in 2017

Timeline

• The share of net wealth owned by the wealthiest 1% of families in the US was 25%. (Source: web_search_results)

  1989

• 12 of the 36 OECD countries had a personal wealth tax. (Source: wikipedia)

  1990

• The number of OECD countries with a personal wealth tax decreased to 5 out of 36. (Source: wikipedia)

  2017

• The share of net wealth owned by the wealthiest 1% of families in the US grew to 34%. (Source: web_search_results)

  2019

• The 25% wealth tax proposal is discussed in the context of the US Presidential Election, with Kamala Harris supporting economic proposals from Joe Biden that include this tax. (Source: document_23376dcf-178a-42cd-9c96-71d8ef9ab0f4)

  2024

• A broad-base 1% tax on net wealth above $50 million (or $25 million for unmarried individuals) is estimated to raise $1.9 trillion in revenue during this period, with 86% owed by families in the top 1% of income distribution. (Source: web_search_results)

  2025-2034

Wealth tax

A wealth tax (also called a capital tax or equity tax) is a tax on an entity's holdings of assets or an entity's net worth. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts (a one-off levy on wealth is a capital levy). Typically, wealth taxation often involves the exclusion of an individual's liabilities, such as mortgages and other debts, from their total assets. Accordingly, this type of taxation is frequently denoted as a net wealth tax. As of 2017, five of the 36 OECD countries had a personal wealth tax (down from 12 in 1990). Proponents often argue that wealth taxes can reduce income inequality by making it harder for individuals to accumulate large amounts of wealth. Many critics of wealth taxes claim that wealth taxes can have a negative economic effect, with economic models showing long-run GDP declines of 2% to 5%, the loss of hundreds of thousands of jobs and a loss in other tax revenue which exceeds the revenue from the wealth tax.

Web Search Results

• [PDF] TAXING WEALTH IN THE UNITED STATES: ISSUES AND ...

  as raising the income tax rates for taxpayers with income greater than $400,000 and increasing the number of taxable estates. Still, while his budget plans did not include an explicit wealth tax, one of his proposals to increase individual income taxes on high-wealth individuals was triggered by a wealth test: taxpayers with over $100 million of net assets would be subject to a minimum tax of 25 percent on total income including accrued capital gains on assets that had not yet been sold [...] wealth tax unconstitutional—may ultimately stymy efforts to enact a federal wealth tax. TA X P OLICY CENTER | URBAN INSTITUTE & BROOKINGS INSTITUTION 3 INTRODUCTION In the United States, as in many countries, wealth inequality has grown over the last several decades. Federal Reserve Board economists estimate that the share of net wealth owned by the wealthiest 1 per cent of families grew from 25 percent in 1989 to 34 percent in 2019 (Bricker, Goodman, Moore, and Henriques-Volz 2020). During [...] a wealth tax would raise a substantial amount of revenue while reducing wealth inequality. For example, a broad-base 1 percent tax on net wealth above $50 million ($25 million for unmarried individuals) would raise $1.9 trillion between 2025 and 2034, with 86 percent of the revenue owed by families in the top 1 percent of the income distribution. The revenue estimate would fall by nearly half if, mirroring other countries, the tax exempted pensions, the value of personal residences above $1

• The Pros and Cons of Wealth Taxes | Poole Thought Leadership

  Another benefit of this proposal is that it only applies to about 2,600 people. While the average taxpayer may balk at a 25-percent tax increase, virtually none of them would be affected by it. The burdens would fall just on the ultra-wealthy.

• Wealth tax - Wikipedia

  0.7% (municipal) and 0.15% (national) a total of 0.85% levied on net assets exceeding 1,500,000 kr (approx. US$170,000) as of 2019.( For tax purposes, the value of the primary residence is valued to 25% of the market value, secondary residences to 90% of the market value, while working capital such as commercial real estate, stocks, and stock funds are valued at various percentages.( The Conservative Party "Conservative Party (Norway)"), Progress Party "Progress Party (Norway)") and the Liberal [...] A wealth tax (also called a capital tax or equity tax) is a tax on an entity's holdings of assets or an entity's net worth. This includes the total value of personal assets, including cash, bank deposits, real estate, assets in insurance and pension plans, ownership of unincorporated businesses, financial securities "Security (finance)"), and personal trusts (a one-off levy on wealth is a capital levy).( Typically, wealth taxation often involves the exclusion of an individual's liabilities, [...] budget restraints, equating to 2.2 percent of GDP.(

• The High Cost of Wealth Taxes - Tax Foundation

  However, the Spanish system and certain Swiss cantons feature a cap on the sum of wealth and income taxes as a fraction of taxable incomeTaxable income is the amount of income subject to tax, after deductions and exemptions. T axable income differs from—and is less than—gross income. . Additionally, the wealth tax in Spain also features a minimum amount of 20 percent (25 percent in some regions) of the wealth tax liability. Such a cap limits the liquidity problem of a high ratio of income plus [...] The wealth tax is borne by Spanish residents on their worldwide wealth and non-residents on their Spanish-based assets. The 1991 reform raised the exemption threshold and increased the progressivity of the wealth tax, increasing the top rate from 2 percent to 2.5 percent. In 1994, assets used by entrepreneurs for their business activity became exempt. Since 1997, the tax benefit has been extended to publicly traded companies, making business assets fully exempt. Between 1982 (Catalonia) and [...] Wealth taxes generate double or even triple taxation. For safe investments like bonds or bank deposits, a wealth tax of 2 or 3 percent may confiscate all interest earnings, leaving no increase in savings over time. Additionally, if the individual’s wealth is not growing at a rate higher than the tax rate, the tax will ultimately reduce that individual’s wealth.

• New version of the Global Wealth Tax Simulator released at ...

  “All taxes included, the super-rich pay less tax than other groups, typically around 15-20-25% of their income in tax when the working class, the middle class pay 35-40-50-55%, depending on the country”, said Gabriel Zucman, Co-Director of the EU Tax Observatory. Image 2 From research to policy