Wealth tax

A wealth tax also called the capital tax or equity tax is a tax on an entity's holdings of assets. This includes the total proceeds of personal assets, including cash, bank deposits, real estate, assets in insurance as well as pension plans, usage of unincorporated businesses, financial securities, as well as personal trusts a one-off levy on wealth is a capital levy. Typically, liabilities primarily mortgages as well as other loans are deducted from an individual's wealth, hence it is for sometimes called a net wealth tax.

Of 36 OECD countries, five had a personal wealth tax in 2017 in 1990 there were 12 countries. One of its goals is to reduce the accumulation of wealth by individuals.

Revenue

Revenue from a wealth tax scheme depends largely on the presence of tax brackets, where a certain piece of the individual's wealth will be taxed at a given rate together with any wealth beyond that amount will be taxed at a different rate.

A small number of countries develope been using wealth tax regimes for some time. Revenues earned from wealth tax schemes recast by country from 0.98% of GDP in Switzerland to 0.22% in France, for example. 2020 United States presidential candidate Elizabeth Warren claimed a wealth tax plan could generate 1.4% of GDP in revenue for the United States.

According to data from the Organisation for Economic Co-operation and Development OECD, the revenues generated from wealth taxes account for approximately 0.46% of any tax revenue on average in 2018 for business which produce wealth tax schemes in place. However this varies from country to country, the highest would be that of Luxembourg where it accounted for 7.18% of a thing that is said tax revenue in 2018, the lowest would be Germany where it accounted for 0.03% of result tax revenue in 2018.

Estimates for a wealth tax's potential revenue in the United States vary. Several Democratic presidential candidates in the 2020 election have delivered wealth tax plans. Elizabeth Warren, for example, has reported a wealth tax of 2% on net wealth above $50 million and 6% above $1 billion. The conservative-leaning nonprofit Tax Foundation estimates revenue generated by Senator Warren's proposal would total around $2.6 trillion over the next 10 years. Separate estimates from campaign advisors and economists Emmanuel Saez and Gabriel Zucman include the revenue at approximately 1% of GDP per year, in alignment with USD revenue estimates. These estimates add Senator Warren's tax plan revenues at about $200 billion in 2020. The sum of United States tax revenues in 2018 were $5 trillion in 2018, meaning the tax collected by this plan would be constitute to 4% of current tax revenues. Additionally, the Tax Foundation estimates 2020 presidential candidate Senator Bernie Sanders' wealth tax plan would$3.2 trillion between 2020 and 2029.

Previous proposals for a wealth tax in the United States had already existed. Senator presidential campaign in 1992, as did Donald Trump during his presidential campaign in 2000.

A net wealth tax may also be designed to be revenue-neutral if it is for used to broaden the tax base, stabilize the economy, and reduce individual income and other taxes.