Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom


IREF - Institute for Research in Economic and Fiscal issues
Fiscal competition and economic freedom
https://en.irefeurope.org/302

An Economic Rationale for the Net Wealth Tax - Does It Exist?

Abstract: This paper surveys possible motivations having a net wealth tax. After giving a short overview over the state of wealth taxation in OECD countries, we discuss both popular arguments for such a tax, as well as economic arguments. It is argued that classical normative principles of taxation known from public economics cannot give a sound justification for a net wealth tax. The efficiency-related effects are also discussed and shown to be theoretically ambiguous, while empirical evidence hints at a negative effect on GDP growth.

Finally, it is argued that the existence of net wealth taxes is better explained with imperfections of collective decision-making than with economic rationality.

Share this article :

Related contents ...

Brexit Exposes The Hidden Costs Of Tariffs

European Union’s Disastrous Digital Services Tax


Will Scotland’s Price Floor do more Harm than Good?

New Guidelines on Snacking: Another Unnecessary Interference



Any message or comments?

Show Form

 css js

CLOSE

Monthly newsletter
Receive our publications for free

By continuing browsing our website, you agree with our cookies policy