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Lump-Sum Tax Is An Alternative To Wealth Taxation

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  • Mykhailo Sverdan

    (National University of Life and Environmental Sciences of Ukraine, Ukraine)

Abstract

The purpose of the article is to study the topical issues of wealth taxation, which is due to the established stable trends of growth of welfare of market participants. This study can be considered relevant and in demand based on the steady trend of enrichment that has taken hold in the world. This is a consequence of the accelerated pace of economic progress aimed at improving the well-being of individuals. Modern society is characterized by a noticeable increase in the number of wealthy people and an increase in the level of well-being in general. The number of wealthy individuals is especially growing. The purpose of this paper is to determine the essence of taxation of wealthy individuals. The topic of the article is driven by the need to disclose various forms and methods of taxation of wealthy individuals. At the same time, the purpose of the article is to study not the taxation of wealth, but rather the taxation of wealthy individuals. In this regard, the mechanism of one-time taxation is considered. Methodology. A correct analysis of the structure of wealth and wealthy citizens in society makes it possible to assess the effectiveness of specific forms of taxation, including one-time taxation. Results. The article examines the issues and current specifics of the lump-sum tax. The lump-sum tax is currently applied only in some countries, but it is quite effective. Practical implications. The peculiarities of the application of a one-time tax for wealthy individuals are investigated. The economic essence of the one-time tax is investigated. The specifics of the functioning of a one-time tax for wealthy individuals in some countries of the world are considered. Value/originality. It is found that wealth is a complex, multifaceted category which can be characterized as a specific characteristic of the socio-economic structure of society, which determines its status, results, dynamics and development trends. The features of the functioning of the one-time tax in different countries of the world are considered. The use of a one-time tax as a fiscal instrument in the tax system of the state is proposed.

Suggested Citation

  • Mykhailo Sverdan, 2022. "Lump-Sum Tax Is An Alternative To Wealth Taxation," Three Seas Economic Journal, Publishing house "Baltija Publishing", vol. 3(4).
    • Handle: RePEc:bal:3seasj:2661-5150:2022:3:4:6
    DOI: 10.30525/2661-5150/2022-4-6
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    References listed on IDEAS

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    More about this item

    Keywords

    taxation; wealth; lump-sum tax; consumption; income; expenses; economy; well-being;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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