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Progressive Wealth Taxation

Author

Listed:
  • Emmanuel Saez

    (University of California, Berkeley)

  • Gabriel Zucman

    (University of California, Berkeley)

Abstract

This paper discusses the progressive taxation of household wealth. We first discuss what wealth is, how it is distributed, and how much revenue a progressive wealth tax could generate in the United States. We try to reconcile discrepancies across wealth data sources. Second, we discuss the role a wealth tax can play to increase the overall progressivity of the U.S. tax system. Third, we discuss the empirical evidence on wealth tax avoidance and evasion as well as tax enforcement policies. We summarize the key elements needed to make a U.S. wealth tax work in light of the experience of other countries. Fourth, we discuss the real economic effects of wealth taxation on inequality, the capital stock, and economic activity. Fifth, we present a simple tractable model of the taxation of billionaires' wealth that can be applied to the Forbes list of the four hundred richest Americans since 1982 to illustrate the long-run effects of concrete wealth tax proposals on top fortunes.

Suggested Citation

  • Emmanuel Saez & Gabriel Zucman, 2019. "Progressive Wealth Taxation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(2 (Fall)), pages 437-533.
    • Handle: RePEc:bin:bpeajo:v:50:y:2019:i:2019-02:p:437-533
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    File URL: https://www.brookings.edu/articles/progressive-wealth-taxation/
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    Cited by:

    1. Strehl-Pessina, Matías & Bergolo, Marcelo & Leites, Martin, 2025. "Beyond income: Understanding preferences for redistribution among the top 1%," Journal of Economic Behavior & Organization, Elsevier, vol. 237(C).
    2. Advani, Arun & Summers, Andy & Tarrant, Hannah, 2025. "Measuring top wealth shares in the UK," European Economic Review, Elsevier, vol. 178(C).
    3. van Langenhove, Christophe & Lorenz, Jan & Schulz-Gebhard, Jan, 2026. "Wealth taxation, capital gains taxation and the inequality-mobility trade-off," BERG Working Paper Series 211, Bamberg University, Bamberg Economic Research Group.
    4. Marius Brülhart & Jonathan Gruber & Matthias Krapf & Kurt Schmidheiny, 2022. "Behavioral Responses to Wealth Taxes: Evidence from Switzerland," American Economic Journal: Economic Policy, American Economic Association, vol. 14(4), pages 111-150, November.
    5. Nicola Borri & Pietro Reichlin, 2021. "Optimal Taxation with Home Ownership and Wealth Inequality," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 40, pages 64-84, April.
    6. Fella, Giulio & Holm, Martin Blomhoff & Pugh, Thomas M., 2024. "Saving after Retirement and Preferences for Residual Wealth," CEPR Discussion Papers 19233, Centre for Economic Policy Research.
    7. Thomas Webb & Arthur Apostel & Milena Buchs & Richard Barnthaler, 2026. "Wealth Taxes and Post-Growth: How different tax designs align with different goals," Papers 2603.17786, arXiv.org.
    8. Jasper Boll & Emmanuel Saez & Gabriel Zucman, 2026. "California Billionaires: Wealth, Taxes, and Wealth Tax Revenue Estimates," NBER Working Papers 35218, National Bureau of Economic Research, Inc.
    9. Jakob Kapeller & Anna Hornykewycz & Jan David Weber & Lukas Cserjan, 2024. "Dekarbonisierung des Gebaeudesektors als Teil einer sozial-oekologischen Transformation: ein Gestaltungsvorschlag," ICAE Working Papers 156, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    10. Francisco García-Rodríguez, 2025. "Progresividad y Redistribución de la Imposición Patrimonial en España: un Análisis de Microsimulación con el Panel de Hogares," Studies on the Spanish Economy eee2025-19, FEDEA.
    11. Andrew, Jane & Baker, Max & Cooper, Christine & Tweedie, Jonathan, 2024. "Wealth taxes and the post-COVID future of the state," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 98(C).
    12. De Rosa, Mauricio & Vilá, Joan, 2026. "Taxing the rich in Latin America: Effects of a wealth tax on revenue and distribution," Economic Analysis and Policy, Elsevier, vol. 90(C), pages 1440-1466.
    13. Campbell, Richard Cole & Robbins, Jacob A., 2025. "The value of private business in the United States," Journal of Public Economics, Elsevier, vol. 249(C).
    14. Benoît Walraevens, 2021. "The triumph of injustice. Wealth, tax evasion and democracy [Inégalités économiques, justice fiscale et démocratie aux USA]," Post-Print hal-03554121, HAL.
    15. Marcin Lewandowski, 2025. "Wealth inequality through the lens of temptation preferences," GRAPE Working Papers 112, GRAPE Group for Research in Applied Economics.
    16. Saez, Emmanuel & Seim, David, 2025. "Wealth tax enforcement in Sweden: Filing requirements and pre-populated returns," Journal of Public Economics, Elsevier, vol. 249(C).
    17. Cohn, Alain & Jessen, Lasse J. & Klašnja, Marko & Smeets, Paul, 2023. "Wealthy Americans and redistribution: The role of fairness preferences," Journal of Public Economics, Elsevier, vol. 225(C).
    18. Berg, Kristoffer & Hebous, Shafik, 2025. "The effect of parental wealth on labor income: Evidence from the Norwegian wealth tax," Journal of Economic Behavior & Organization, Elsevier, vol. 240(C).

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