Wealth inequality in the United States is higher and has improved sharply in current decades. This increase—alongside a parallel raise in revenue inequality—has spurred improved focus on the implications of inequality for living requirements and improved interest in policy instruments that can combat inequality. Taxes on wealth are a organic policy instrument to address wealth inequality and could raise substantial income, when shoring up structural weaknesses in the present revenue tax technique. This paper delivers an introduction to net worth taxes, possibly the most explicit implies of taxing wealth.
Net worth taxes: What they are and how they operate