Categories: General Tax Terms
Wealth Tax refers to a tax based on the market value of assets owned by an individual or household. It is typically assessed annually and can include a range of assets such as real estate, stocks, bonds, and cash holdings.
Wealth tax is aimed at reducing inequality by taxing those with significant assets, often set above a certain threshold. For example, if a country has a wealth tax with a threshold of $1 million, only individuals with net assets exceeding that amount would be subject to the tax. The tax rate can vary, often ranging from 1% to 3% annually.
Critics of wealth taxes argue that they can discourage savings and investment, while proponents assert they contribute to social equity and funding for public services.
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