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Progressive Wealth Taxation

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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. 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.
    2. Kapeller, Jakob & Hornykewycz, Anna & Weber, Jan & Cserjan, Lukas, 2024. "Dekarbonisierung des Gebäudesektors als Teil einer sozial-ökologischen Transformation: Ein Gestaltungsvorschlag," ifso expertise 25, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    3. 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.
    4. 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).

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