Why Don’t We Have A Wealth Tax Instead of An Income Tax?

Question by : Why Don’t We Have A Wealth Tax Instead of An Income Tax?
Right now a person can have millions of dollars but if they’re not currently making any money they pay nothing on it even though they have plenty of money, and could easily afford to help out.

Is that right? Should it be that way? Why not replace the income tax with a wealth tax, a tax on how much you already own instead of your income?
We could apply the same tax to everything that you spend as well, and eliminate the income tax. That way you pay the same tax no matter whether you keep it or save it.

Best answer:

Answer by iceddopi
i think some countries implement the wealth tax system right? (my lecturer mentioned something along those lines). i suppose it depends on the country. for instance if the majority of the population is middle class income earner who spent most of their wages on living expenses hence little personal wealth accumulated, then the wealth tax system obviously wouldnt be effective right?

as for the millions dollar guy. he must have stored those money in the bank right or invest them somewhere like in properties, or shares etc. those things generate income and those are taxable. unless if he left them all in his house and simply lived off it, then yeah he would pay nothing.

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