Wealth taxes generate little revenue, entail high administrative costs and lead to an exodus of wealthy individuals and their money, according to a study by the business-oriented think-tank Tax Foundation Europe, published on Wednesday 26 June.
On Tuesday 25 June, economist Gabriel Zucman presented a proposal for an internationally coordinated standard guaranteeing effective taxation of the very wealthy (see EUROPE 13440/19), but the Tax Foundation recommends a different approach.
“At European level, a coordinated wealth tax, like the 15% minimum corporate tax, is highly unlikely,” the study says. Instead of a Pillar II approach, a global wealth tax would require an approach closer to Pillar I, where a critical number of countries must sign up to the agreement, including China, Switzerland and the United States. In Switzerland, taxpayers have to approve any tax increase, which makes this proposal “unworkable”.
Tax Foundation advises policy-makers to simplify value added tax (VAT) and implement tax reforms that will accelerate economic growth.
Read the report: https://aeur.eu/f/cv9 (Original version in French by Anne Damiani)