Can the wealth tax be a remedy for public finance and reduce wealth inequalities in Poland?

Marcin Wroński

No 03/2021, IBS Policy Papers from Instytut Badan Strukturalnych

Abstract: Wealth tax proponents suggest that it should be introduced in order to reduce wealth inequalities and to gain additional tax revenues. In this paper, based on empirical data, I will attempt to prove that these objectives are hardly attainable through wealth tax. The impact of wealth tax on wealth inequalities would be rather low, as would any revenues resulting from its introduction. The tax would be paid by a relatively small number of taxpayers. Furthermore, the administrative requirements to collect it would be expensive and complicated. Therefore, since the benefit-cost ratio is unfavourable, the implementation of a wealth tax is an unfeasible solution. Instead, the objectives behind the wealth tax may be attained more effectively through a more progressive tax system and the imposition of an inheritance tax.

Keywords: inequalities; public finance; wealth tax (search for similar items in EconPapers)
Pages: 13 pages
Date: 2021-04
New Economics Papers: this item is included in nep-pub
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Persistent link: https://EconPapers.repec.org/RePEc:ibt:ppaper:pp032021

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