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 ?
That is why property and wealth taxes are likely to become the foundation of a new political alignment in Europe.
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.
If motor vehicle wealth taxes have indeed delayed fleet turnover, they might have resulted in additional unintended consequences, namely a decrease in air quality resulting from an increase in emissions from motor vehicles.
Therefore, to the extent that motor vehicle wealth taxes affect vehicle age distributions, changes to these taxes may be viable options for governments charged with the task of decreasing mobile source emissions.
The objective of this analysis is to examine the effects of motor vehicle wealth taxes on households' vehicle purchase and age decisions that might affect emissions and air quality so that policy makers might make more informed decisions regarding the future use and structure of these taxes.
However, it does represent the first study to examine the effects of motor vehicle wealth taxes on household vehicle purchase and age decisions in the United States as existing research focuses either on the tax structures and vehicle fleets in other countries or aggregate state-level data in the U.
Two recent studies have analyzed the effects of vehicle wealth taxes on purchase and registration decisions using data from the United States.
Some buyers use companies registered in tax havens to purchase their holiday home to reduce or avoid altogether some overseas wealth taxes.
Among 22 countries, Canada ranked 21st in percentage of tax revenues derived from wealth taxes.
I doubt whether it will remind Labour of their previous commitment to wealth taxes, which now only the Liberal Democrats favour.
Cutting spending instead of raising wealth taxes favours the better off and hits the poor hardest.