Wealth Tax

Wealth Tax
It is a tax based on the market value of assets that are owned. These assets include, but are not limited to, cash, bank deposits, shares, fixed assets, private cars, assessed value of real property, pension plans, money funds, owner occupied housing and trusts. An ad valorem tax on real estate and an intangible tax on financial assets are both examples of a wealth tax. Although many developed countries choose to tax wealth, the United States has generally favored taxing income.

Wealth tax is imposed on the wealth possessed by individuals in a country. The tax is on a person's net worth which is assets minus liabilities. Not all countries have this type of tax; Austria, Denmark, Germany, Sweden, Spain, Finland, Iceland and Luxenberg have abolished it in recent years. The United States doesn't impose wealth tax but requires income and property taxes.


Investment dictionary. . 2012.

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  • wealth tax — A tax used in some European countries, not including the UK, consisting of an annual levy on assets. In practice, the implementation of a wealth tax requires a clear identification of the assets to be charged and an unassailable valuation of… …   Accounting dictionary

  • wealth tax — /ˈwɛlθ tæks/ (say welth taks) noun a tax that is levied on the base of wealth as distinct from income, usually applied to the value of the taxpayer s net assets above a certain threshold level …  

  • wealth tax — noun a tax levied on personal capital …   English new terms dictionary

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  • Wealth Tax Act —    See Revenue Acts, 1935, 1936, 1938 …   Historical Dictionary of the Roosevelt–Truman Era

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