IDEAS home Printed from https://ideas.repec.org/a/wly/fistud/v42y2021i3-4p615-650.html
   My bibliography  Save this article

Valuation for the purposes of a wealth tax

Author

Listed:
  • Stephen Daly
  • Helen Hughson
  • Glen Loutzenhiser

Abstract

This paper considers the scale and prevalence of valuation issues under a wealth tax. Valuation issues are frequently cited in the literature as the most difficult aspect of wealth taxes. We examine some of the most problematic asset types from a valuation perspective. We also consider a range of solutions to manage these concerns, drawing on international experience and the approaches already taken for other taxes within the UK system. We conclude that satisfactory options for arriving at a value for wealth tax purposes are available even for the most problematic assets. We also estimate that the absolute number of taxpayers likely to pay substantial valuation fees is small, and that, in aggregate, valuation costs could be contained to around 0.1 per cent or less of total chargeable assets, even if they are substantial for some individual taxpayers.

Suggested Citation

  • Stephen Daly & Helen Hughson & Glen Loutzenhiser, 2021. "Valuation for the purposes of a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 615-650, September.
    • Handle: RePEc:wly:fistud:v:42:y:2021:i:3-4:p:615-650
    DOI: 10.1111/1475-5890.12287
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1475-5890.12287
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1475-5890.12287?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Arun Advani & Hannah Tarrant, 2021. "Behavioural responses to a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 509-537, September.
    2. (IFS), Institute for Fiscal Studies & Mirrlees, James (ed.), 2011. "Tax By Design: The Mirrlees Review," OUP Catalogue, Oxford University Press, number 9780199553747.
    3. Emma Chamberlain, 2021. "Who should pay a wealth tax? Some design issues," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 599-613, September.
    4. Glen Loutzenhiser & Elizabeth Mann, 2021. "Liquidity issues: solutions for the asset rich, cash poor," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 651-675, September.
    5. Jonathan Cribb & Helen Miller & Thomas Pope & Jonathan Cribb, 2019. "Who are business owners and what are they doing?," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2019-12, Economic Statistics Centre of Excellence (ESCoE).
    6. Arun Advani & Helen Hughson & Hannah Tarrant, 2021. "Revenue and distributional modelling for a UK wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 699-736, September.
    7. David Burgherr, 2021. "The costs of administering a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 677-697, September.
    8. Chamberlain, Emma, 2021. "Who should pay a wealth tax? Some design issues," LSE Research Online Documents on Economics 111925, London School of Economics and Political Science, LSE Library.
    9. Sandford, Cedric & Morrissey, Oliver, 1985. "The Irish Wealth Tax: A Case Study in Economics and Politics," Research Series, Economic and Social Research Institute (ESRI), number GRS123.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nick O'Donovan, 2021. "One‐off wealth taxes: theory and evidence," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 565-597, September.
    2. Arun Advani & George Bangham & Jack Leslie, 2021. "The UK's wealth distribution and characteristics of high‐wealth households," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 397-430, September.
    3. Glen Loutzenhiser & Elizabeth Mann, 2021. "Liquidity issues: solutions for the asset rich, cash poor," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 651-675, September.
    4. Arun Advani & Hannah Tarrant, 2021. "Behavioural responses to a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 509-537, September.
    5. Emma Chamberlain, 2021. "Who should pay a wealth tax? Some design issues," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 599-613, September.
    6. Arun Advani & Helen Hughson & Hannah Tarrant, 2021. "Revenue and distributional modelling for a UK wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 699-736, September.
    7. Arun Advani & Helen Miller & Andy Summers, 2021. "Taxes on wealth: time for another look?," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 389-395, September.
    8. Dominik Bernhofer & Michael Ertl & Katharina Bohnenberger & Franziska Disslbacher & Julia Hofmann & Petra Innreiter & Markus Marterbauer & Patrick Mokre & Matthias Schnetzer, 2022. "Tax me if you can. Potenziale moderner Vermögensbesteuerung in Österreich," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 48(2), pages 207-230.
    9. Sarah Perret, 2021. "Why were most wealth taxes abandoned and is this time different?," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 539-563, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arun Advani & Helen Miller & Andy Summers, 2021. "Taxes on wealth: time for another look?," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 389-395, September.
    2. Glen Loutzenhiser & Elizabeth Mann, 2021. "Liquidity issues: solutions for the asset rich, cash poor," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 651-675, September.
    3. David Burgherr, 2021. "The costs of administering a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 677-697, September.
    4. Advani, Arun & Summers, Andy, 2022. "Measuring and taxing top incomes and wealth," The Warwick Economics Research Paper Series (TWERPS) 1403, University of Warwick, Department of Economics.
    5. Nick O'Donovan, 2021. "One‐off wealth taxes: theory and evidence," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 565-597, September.
    6. Stuart Adam & Helen Miller, 2021. "The economic arguments for and against a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 457-483, September.
    7. Dominik Bernhofer & Michael Ertl & Katharina Bohnenberger & Franziska Disslbacher & Julia Hofmann & Petra Innreiter & Markus Marterbauer & Patrick Mokre & Matthias Schnetzer, 2022. "Tax me if you can. Potenziale moderner Vermögensbesteuerung in Österreich," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 48(2), pages 207-230.
    8. Krenek Alexander & Schratzenstaller Margit, 2022. "A Harmonized Net Wealth Tax in the European Union," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 242(5-6), pages 629-668, December.
    9. Arun Advani & Helen Hughson & Hannah Tarrant, 2021. "Revenue and distributional modelling for a UK wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 699-736, September.
    10. Sarah Perret, 2021. "Why were most wealth taxes abandoned and is this time different?," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 539-563, September.
    11. Arun Advani & Hannah Tarrant, 2021. "Behavioural responses to a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 509-537, September.
    12. Emma Chamberlain, 2021. "Who should pay a wealth tax? Some design issues," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 599-613, September.
    13. Andy Summers, 2021. "Ways of taxing wealth: alternatives and interactions," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 485-507, September.
    14. Stuart Adam & Helen Miller, 2019. "Principles and practice of taxing small business," IFS Working Papers W19/31, Institute for Fiscal Studies.
    15. Florian Scheuer & Joel Slemrod, 2021. "Taxing Our Wealth," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 207-230, Winter.
    16. Arun Advani & George Bangham & Jack Leslie, 2021. "The UK's wealth distribution and characteristics of high‐wealth households," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 397-430, September.
    17. Summers, Andy, 2022. "Is it possible to tax the super-rich?," LSE Research Online Documents on Economics 121990, London School of Economics and Political Science, LSE Library.
    18. José Mª Durán Cabré & Alejandro Esteller Moré, 2023. "Conocimiento fiscal: un aspecto clave para la evaluación de políticas públicas," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 103(01), pages 214-247.
    19. European Commission, 2013. "Tax reforms in EU Member States - Tax policy challenges for economic growth and fiscal sustainability – 2013 Report," Taxation Papers 38, Directorate General Taxation and Customs Union, European Commission.
    20. Langenmayr, Dominika & Haufler, Andreas & Bauer, Christian J., 2015. "Should tax policy favor high- or low-productivity firms?," European Economic Review, Elsevier, vol. 73(C), pages 18-34.

    More about this item

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • J1 - Labor and Demographic Economics - - Demographic Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:fistud:v:42:y:2021:i:3-4:p:615-650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1475-5890 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.