9/15/2023 0 Comments What countries have a flat tax![]() For instance, Austria effectively repealed its net wealth tax in 1994, but revenues from the tax continued to trickle in until 2000. The revenue data from the OECD does not perfectly match the policy changes made by countries. However, a wealth tax would be a particularly poor way to encourage risk-taking. Essentially, the argument is that because a wealth tax would erode the after-tax return for an entrepreneur, that entrepreneur might engage in even riskier ventures to maximize a potential return. The report also suggests that a net wealth tax could spur investment and risk-taking. Colombia is currently operating a temporary 1 percent tax on net wealth for tax years 2019 through 2021.Īn OECD report about wealth taxes argues that these taxes can harm risk-taking and entrepreneurship, harming innovation and impacting long-term growth. At its peak in 2014, revenue from the French net wealth tax made up 0.55 percent of total French revenue. Among those five OECD countries collecting revenues from net wealth taxes, revenues made up just 1.5 percent of total revenues on average in 2020.įrance’s net wealth tax was mostly repealed in 2018 and now only applies to real property. Revenues from net wealth taxes made up 5.12 percent of revenues in Switzerland in 2020 but just 0.19 percent of revenues in France. In the OECD data, the countries that collected revenues from net wealth taxes on individuals in 2020 are Colombia, France, Norway, Spain, and Switzerland. The data includes revenues from taxes on the net wealth of individuals.Īccording to these data, the number of current OECD members that have collected revenue from net wealth taxes has grown from eight in 1965 to a peak of 12 in 1996 to just five in 2020. The OECD maintains detailed tax revenue statistics for its 38 member countries. However, those trends and the current state of wealth taxes in OECD countries can provide context for U.S. Recent discussions of a proposed wealth tax for the United States have included little information about trends in wealth taxation among other developed nations. ![]()
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