The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Taxation of Wealth

  • Alan J. Auerbach
Reference work entry


One of the oldest forms of taxation, wealth taxes may take the form of annual taxes based on property or net worth, or assessments collected at less regular intervals, on estates or inheritances or in the form of emergency capital levies. Wealth taxes are still prominent but have become less important than income taxes as a source of revenue. Although wealth taxes are related in structure to taxes on capital income, their economic effects depend on their form. In addition to explicit taxes on wealth, governments impose implicit capital levies through changes in tax policy.


Capital levies Dynamic inconsistency Estate taxes George, H. Implicit wealth taxes Inheritance taxes Land tax Local wealth taxes Net worth taxation Precautionary savings Property tax Single tax Taxation and risk-taking Taxation of capital income Taxation of wealth Tiebout hypothesis 

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Alan J. Auerbach
    • 1
  1. 1.