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 ?
Lack of data on movable and immovable assets other than agricultural land held by landowners of that land complicates the estimation of potential gains from wealth tax if the proposed changes were introduced.
The FBR then launched a plea against the tribunals decision with the Islamabad High Court, which ruled in favour of FBR and directed the centre to pay the wealth tax.
The study will contribute to a more professionally-funded debate on wealth tax, and will be based on register data or other microdata.
Wealth tax has been rescinded by most countries as a potential source of revenue because it is anti-investment and savings as it taxes assets created out of tax paid funds that is inherently unfair.
That is why it's time for a wealth tax on Scotland's wealthiest 10 per cent, which would raise PS3.7 billion to invest in our cash-starved public services.
ISLAMABAD -- The government is planning to impose wealth tax on moveable assets to control the country's budget deficit, and this might raise customs duties even further on more than 5200 tariff lines.
At the conclusion of Capital in the Twenty-First Century, the French economist Thomas Piketty calls for the establishment of a global wealth tax as a key intervention to move increasingly unequal societies away from our drift toward patrimonial capitalism.
Justice Gulzar Ahmed headed the three-member bench in the Civic Centre building wealth tax case.
Minister Matambo was responding to a question by Selebi Phikwe West Member of Parliament, Mr Dithapelo Keorapetse, who had asked the minister to state if his ministry had any plans to introduce wealth tax as inter alia a solution to worsening inequalities and boosting government tax collection or revenue in the foreseeable future.
These non-transferable bonds will be exempt from wealth-tax under the Wealth Tax Act, 1957, the Finance Ministry statement said.
During the hearing headed by Justice Mohammad Bashir, prosecution witness Tasleem Khan recorded his statement, saying he went to NAB office on Commissioner Inland Revenue Fizza Batool's directives and submitted wealth tax record of Nawaz Sharif and his sons while Jahangir Ahmed present income tax record.
He has, after all, eliminated the wealth tax, introduced greater labour-market flexibility, cut housing benefits, and introduced reforms to higher education - policies that a majority of right-wing voters embrace.