Net Wealth Taxes: How They Can Help Fight Inequality and Fund Sustainable Development

Taxing wealth can take many forms; policy makers should carefully analyse options best suited to the existing tax system and the social-economic situation in their country. Ensuring effective taxation of wealth is a tool to address inequality, increase progressivity in the tax system, and raise domestic revenues to finance sustainable development. Net wealth taxes are gaining support, fuelled by the view that all individuals and corporations must pay their fair share of taxes. Investments in technological progress and automation of tax administrations, coupled with third-party reporting, international tax cooperation in the form of exchange of information and exit taxes, are crucial elements that could help countries to efficiently and effectively levy a net wealth tax.