Ways of taxing wealth: alternatives and interactions

Andrew Summers

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In this paper, I examine the role of a wealth tax in the context of the UK's existing taxes on wealth. First, I discuss several ways in which the UK could be said to tax wealth already, and I set out two possible directions for reforming these taxes, highlighting policies that are merited under either approach. Second, I consider whether and under what circumstances a broad-based tax on the ownership of wealth – a ‘wealth tax’ – could be justified instead of or in addition to these reforms. Third, I address how a wealth tax should interact with other taxes, focusing on concerns regarding ‘double taxation’ and (conversely) proposals for an alternative minimum tax based on wealth. I conclude that there is a large degree of consensus amongst existing proposals to reform our current taxes on wealth, and that most of these reforms would be required whether or not a wealth tax is introduced as well.

Keywords: capital gains tax; comprehensive income tax; income tax; inheritance tax; Mirrlees review; wealth tax; ES/L011719/1; International Inequalities Institute AFSEE COVID‐19 fund (search for similar items in EconPapers)
JEL-codes: H20 H24 H26 K34 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2021-10-25
New Economics Papers: this item is included in nep-acc, nep-law, nep-pbe and nep-pub
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Citations: View citations in EconPapers (9)

Published in Fiscal Studies, 25, October, 2021, 42(3-4), pp. 485 - 507. ISSN: 0143-5671

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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:111867

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