Definition
A Wealth Tax is a levy on an individual’s total net worth, including assets like real estate, stocks, and other valuables. It aims to address wealth inequality.Core Concept
It’s an annual tax applied to the market value of all assets owned by an individual, minus their liabilities. This differs from income or property taxes.How It Works
Governments define a threshold; individuals with net wealth above this threshold pay a percentage of their assets annually. Valuations are critical and often complex.Common Arguments
Proponents cite fairness and funding public services. Critics raise concerns about capital flight, administrative difficulty, and potential disincentives for wealth creation.Author
