wealth tax

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Related to wealth tax: income tax, gift tax

Wealth Tax

A tax levied on a person's or company's net assets, as opposed to income. For example, if a person has a net worth of $1 million, the government may assess a wealth tax on this amount over and above the tax on that person's income. Proponents believe this tax promotes equality while critics maintain it discourages accumulation of wealth, which is thought to drive economic growth.
Wealthclick for a larger image
Fig. 89 Wealth. The distribution of marketable wealth in the UK, 2002. The total includes land and dwellings (net of mortgage debt), stocks and shares, bank and building society deposits and other financial assets, but excludes life assurance and pensions. (Source: Social Trends, 2004).

wealth tax

a DIRECT TAX imposed by the government on a person's private assets when those assets are transferred to the person's beneficiaries. Wealth taxes are used by governments principally as a means of promoting social equity by reducing disparities in WEALTH holdings. In the UK INHERITANCE TAX is the current means of taxing wealth.

wealth tax

a TAX levied on a person's private ASSETS when those assets are transferred to the person's beneficiaries. Wealth taxes can be used to redistribute WEALTH within the community as part of government policy on INCOME DISTRIBUTION. The UK's wealth tax has taken various forms over the years, notably estate duties, capital transfer tax and (currently) inheritance tax.

Currently (as at 2005/06) ‘chargeable assets’, such as houses, stocks and shares up to a ‘threshold’ value of £275,000, are tax-exempt. Above £275,000, inheritance tax is levied at a flat rate of 40%. Assets transferred more than seven years before the donor's death are exempt from tax, while assets transferred between three and seven years before death are taxed at a lower rate.

References in periodicals archive ?
Dr Bharat Butaney, former president of Indain Business and Professional Council Dubai: Simplification and rationalisation of the taxation structure and setting a clear roadmap of reform for the next four years, re-structuring corporate taxes, wealth tax, revise income tax, realistic disinvestment targets, new bankruptcy law and law to curb black money -- all this reflects the solid attempt to re-architecture whole of India.
The Inland Revenue had been alert to the possibility that Labour might want to introduce a wealth tax as early as 1963 when its first recorded notes on the topic discussed what administration and staffing might be needed to implement it (The National Archives: Public Record Office, Kew (hereafter TNA: PRO) IR40/18573).
Thus in the days when the wealth tax was leviable, even the big absentee landlords were paying some amount of personal tax.
Specifically, states with areas that have air pollution levels that persistently exceed ambient air quality standards and have thus been classified as nonattainment areas by the Environmental Protection Agency might be able to make adjustments to their wealth tax policies to achieve attainment status.
Repeated attempts by conservative members of Parliament to merely amend the wealth tax have been opposed by Chirac.
The net wealth tax contributed a maximum of just more than 0.
The wave of the future is with the wealth tax replacing the income tax.
Thus an average wealth tax of 1 per cent would yield $19 billion annually, or almost three-quarters of the yield from Freebairn's minimalist GST.
He gained enactment of a wealth tax, revived the estate and gift taxes, and imposed a special tax on undistributed profits to stop the use of corporations as personal tax shelters.
Among other things, Dugger calls for publicly mandated free TV and radio time for all bona fide candidates; limiting political contributions to $100; a single-payer health-care plan; doubling the minimum wage with indexing for inflation; and restoring the progressive income tax with a surtax on corporate profits and steeply graduated wealth tax on personal assets of $5 million or more.
At the same time, import tax exemptions will be eliminated, excise taxes on gasoline and diesel fuel will be increased and a wealth tax on the livestock sector will be introduced.
At present there are only two forms in which the Government can tax landowners (landholders) directly and include the tax revenue in its budget: (i) land revenue, being a tax on land that generates income, and (ii) wealth tax, being a tax on agricultural land as immovable property.