Is the incidence of a comprehensive wealth tax likely to be progressive? Is the property tax, as used in the United States, a comprehensive wealth tax? Why do some critics of the tax argue that it is regressive?© BrainMass Inc. brainmass.com October 25, 2018, 9:04 am ad1c9bdddf
First Question: Is the incidence of a comprehensive wealth tax likely to be progressive?
I would suggest defining the terms comprehensive wealth tax and a progressive tax. You can do this in a way that frames whether you believe it will be progressive or not. The answer lies largely in the way the tax is structured. There are two main ways the tax could be structured. It could be a flat tax, which takes a percentage of the person's net value (property, income, etc.) regardless of how much you do or do not have. People who have "more" will pay more in an actual dollar amount, but the same in percentage amount as a person who has less. However, if the tax is structured based off of means say for example people who have over $100,000 will be taxed at 10%, people who ...
Framing the discussion of types of taxes, structures, and outcomes.
An Upward Sloping Supply Curve
If the supply curve of savings is upward sloping, a comprehensive wealth tax will:
a. increase the market rate of interest.
b. reduce the market rate of interest.
c. have zero excess burden.
d. have no effect on investment