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 ?
Lord Willetts said higher wealth taxes are needed unless the burden of paying for an ageing population is to be placed entirely on the shoulders of young people who are already struggling to match the living standards of their parents.
Third, property and wealth taxes could be better explored to reduce wealth inequality.
That is why property and wealth taxes are likely to become the foundation of a new political alignment in Europe.
There has been a wave of OECD countries abolishing their personal net wealth taxes recently.
The taxable value of many assets that are subjected to net wealth taxes does, however, often differ from their market prices, and it does not increase automatically through time.
The incentive effects provided by annual motor vehicle wealth taxes have received relatively little consideration.
Motor vehicle wealth taxes tend to be based on either the age or value of the vehicle which results in a tax liability that decreases with age.
Wealth taxes were abolished in 1969 and, over the last couple of decades, the income tax has become increasingly less progressive.
Some will argue that wealth taxes are hard to administer and unfair because they might require some taxpayers to liquidate some of their holdings in order to pay the tax.
The government had reportedly agreed with its Left and Green party parliamentary allies to reduce wealth taxes, and now the three parties want to make up for the shortfall by increasing taxation on private pension savings.
I doubt whether it will remind Labour of their previous commitment to wealth taxes, which now only the Liberal Democrats favour.
of the immovable property, which net wealth taxes with respect to