Net Wealth Tax Implementation as a Tax Policy Tool

Abstract

In this study, the design features of the net wealth tax are discussed. Increasing wealth concentration and the recent economic crises that deepened it have brought wealth tax back to the agenda of tax policy. In this context, first of all, the reasons for the wealth tax are presented. Then, the design features of an appropriate wealth tax in achieving the objectives expected from taxation are discussed. Finally, the issue of valuation, which is the most important problem in wealth tax, is discussed. Evaluation of the result is that it will be possible to evaluate even the problematic assets (pension rights, main residences, financial assets, agricultural lands and heritages) with the market value or an appropriate approach. In this way, a broad-based wealth tax will be effective in eliminating inequality and in fair taxation.