Wealth Tax in the US?

[Saturday]

So I've been thinking a lot about wealth taxes lately.

First: what is a wealth tax?

A wealth tax (also called a capital tax, equity tax, or net worth tax) is a levy on the total value of personal assets, including owner-occupied housing; cash, bank deposits, money funds, and savings in insurance and pension plans; investment in real estate and unincorporated businesses; and corporate stock, financial securities, and personal trusts. Typically liabilities (primarily mortgages and other loans) are deducted, hence it is sometimes called a net wealth tax.

Things like this tend to get proposed quite a bit. The UK's Green Party tried it at one point, I believe. France has a wealth tax, and Norway and Lichtenstein both have versions of them.

I think it's highly unlikely that something like this could happen in the US. But let's play pretend for a bit-- regardless of the fact that it would be incredibly difficult for something like this to actually happen, do you guys think that a wealth tax could help the United States? Or would it cause more problems than it solved?

[Xellos-_^]

how does it work?

Annual/lifetime?

Does it replace income tax or does the same income get tax twice?

I am all for higher tax rates for higher income brackets and getting rid of tax loop holes but taxing the same money twice makes me uncomfortable.

[Anh_Minh]

Originally Posted by Xellos-_^

I am all for higher tax rates for higher income brackets and getting rid of tax loop holes but taxing the same money twice makes me uncomfortable.

The same money gets taxed a lot more than twice. For example, if you buy an expensive house, it'll get taxed every year. Your heirs will pay tax on it.