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 ?
In the 1990s, Nawaz Sharif, Shehbaz Sharif, Kalsoom Nawaz , Hamza Shehbaz and others challenging the evaluation of their wealth tax.
Mr Smith said his proposed wealth tax would involve a levy of 15% on "unearned income from investment", charged on people with a taxable income of PS150,000 a year or more.
Wealth Tax shall not be payable on any asset so disclosed.
Indeed, New York City-based investment advisor Romain Hatchuel, in a potentially prophetic interview with ThinkAdvisor earlier this year, anticipated a future receptive to a wealth tax and higher tax rates, arguing explicitly that the rise of redistributionist New York City mayor Bill de Blasio, Cyprus' asset seizure and an obscure International Monetary Fund paper calling for a one-off levy on private wealth were beginning to reshape the climate of opinion.
Non-disclosure of assets for wealth tax: Not many people know that if they own unproductive assets such as urban land, vacant house, personal car, gold, expensive watches, paintings, etc, they are liable to pay wealth tax if the net aggregate value of these things exceeds Rs 30 lakh.
These ideas may have been buried in Labour memory and fed the Trades Union Congress demands for a wealth tax in 1974.
He said the official amendment makes it abundantly clear that there is no proposal to impose wealth tax.
We will briefly discuss the wealth tax as an equivalent to the capital income tax in Section 3 of this paper.
Mr Clegg floated plans for a short-term wealth tax in a move that will be widely viewed as an attempt to reach out to Liberal Democrat grassroots ahead of next month's annual conference as well as sharpening distinctions between the party and its coalition colleagues.
The PCOT Secretary General also stressed the need to fundamentally revise the tax system, to impose a wealth tax, to suspend for three years the payment of the debt and to speed up the recovery of the despoiled assets abroad.
The DTC automatically triggers wealth tax rules with the change of definition of NRIs.
Swiss wealth tax is levied on the value of an individual's worldly assets (minus the value of any debts) at Cantonal and local levels.