A wealth tax is an inefficient tool for income redistribution, according to a study published on Friday 24 May by the business-oriented think-tank Tax Foundation Europe.
The study claims that the effect of such a tax would be to widen - rather than reduce - many of the socio-economic disparities it seeks to resolve, due in particular to the risks of capital flight, tax evasion and the complexity of applying the law.
In addition, the study finds that high marginal tax rates discourage...