What is a Wealth Tax?
A wealth tax is a tax which is levied on the wealth held by a person or entity. Most wealth taxes around the world are based on net worth, the amount of someone’s wealth minus his or her debts. Several nations use a wealth tax to raise funds for the government, with varying types of wealth taxes in use, and some economists have suggested that there are definite advantages to wealth taxes which should spur more nations to adopt them. The style of tax usually contrasted with a wealth tax is an income tax, which is based on the amount of income someone makes in a year. Income taxes are sometimes heavily criticized because members of the middle and lower classes tend to pay disproportionate amounts, and many wealthy individuals pay relatively low income taxes. Proponents of wealth taxes suggest that these taxes would promote more equality in taxation while also raising large amounts of funds for the government by taxing the substantial holdings of the wealthiest members of society. Include
