wealth tax

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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 ?
The net worth tax I am calling for, which would take a much larger bite and would be aimed at only the wealthiest 2 percent of the population, could cut the deficit by more than $1 trillion.
A net worth tax would recapture some of the money that went to the rich--a kind of reverse refund.
This invalidates several state laws that imply that nonphysical presence establishes nexus with a state, such as Pennsylvania's net worth tax and California's franchise tax.
The new business privilege tax is a net worth tax imposed on corporations, limited liability entities and disregarded entities (as defined under the new law).
The annual shares tax, which applies only to corporations, is substantially different from the shares tax previously applicable to Alabama corporations; essentially, it is an apportioned net worth tax. In computing the tax base, certain additions and exclusions from net worth are allowed, some of which are similar to additions and exclusions allowed under the former shares tax.
However, in the future, if the tax based on income is higher than the net worth tax, the entire Ohio tax is required to be added back in determining Virginia taxable income.
Additionally, citizens and residents of the UAE are not subject to personal income tax, capital gains taxes, or net worth taxes; however, VAT will apply from 2018 onwards.
>> Free Trade Zones: Areas exempt from business income taxes and net worth taxes as well as any other tax created now or in the future.
* Franchise, gross receipt, and net worth taxes may apply to the REIT, QRS, or affiliate;
Tresh's session on state franchise and net worth taxes at the Institute's 2009 State and Local Tax Course.
ACIR rankings for corporate net income and net worth taxes ranked Arkansas 35th for "tax effort."
GAAP to allow for compliance with state net worth taxes, and another under IFRS for financial reporting purposes.