foxex: What is 'Wealth Tax'?

Wednesday, October 2, 2019

What is 'Wealth Tax'?

Wealth tax is a tax based on the market value of assets that are owned. Although many developed countries choose to tax wealth, the United States has generally favored taxing income.

Wealth tax is also called capital tax or equity tax.

Related to "Wealth Tax"

Countries With the Highest Single and Family Income Tax Rates

Before you move to one of these countries with the highest income taxes rates, think through the overall tax situation and what you get for your money.

Regressive vs. Proportional vs. Progressive Taxes: What's the Difference?

Three basic types of tax systems are used in the U.S.—regressive, proportional, and progressive. Regressive taxes are said to unduly burden the low-income individuals. Progressive taxes hit high-income earners harder, while proportional taxes treat everyone the same.

How Tax Cuts Stimulate the Economy

Learn the logic behind the belief that reducing government income benefits everyone.

Related Definitions

Net Worth

Net worth is a quantitative concept that measures the value of an entity and can be applicable to individuals, corporations, sectors and even countries.

Fixed Asset

A fixed asset is a long-term tangible asset that a firm owns and uses to produce income, and it is not expected to be used or sold within a year.

Ad Valorem Tax

An ad valorem tax is a tax derived from the value of real estate or personal property.

Tax Bracket

A Tax Bracket is the rate at which an individual is taxed. Tax brackets are set based on income levels.