The Return of the Wealth Tax Debate

By Jack Salmon. He is the director of Policy Research at Philanthropy Roundtable. Excerpt

"The history of wealth taxes suggests they are not effective and are frequently abandoned due to the economic damage they cause. Fifteen European countries have introduced wealth taxes over the last century, but only three still enforce them.

In 2017, France eliminated its wealth tax after the prime minister acknowledged it was prompting the departure of 10,000 to 12,000 millionaires each year. This tax impeded economic growth and contributed to just over 1% of overall tax revenue, which is an inadequate return for the cost.

Sweden, which is often cited as a progressive policy model, had a wealth tax for almost 100 years before abandoning it in 2007. The tax had virtually no effect on government finances while being blamed for significant capital flight. Germany also had a wealth tax, but it was deemed unconstitutional and abolished in 1996. Wealth taxes have not proven successful worldwide, and it remains uncertain whether the U.S. Constitution grants Congress the authority to impose such a tax."