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Wealth taxation in the United States*
Edward N. Wofff 
Article | Year: 2020 | Pages: 153 - 178 | Volume: 44 | Issue: 2 Received: November 4, 2019 | Accepted: February 10, 2020 | Published online: June 1, 2020
|
FULL ARTICLE
FIGURES & DATA
REFERENCES
CROSSMARK POLICY
METRICS
LICENCING
PDF
|
Country
|
Direct wealth
taxation
|
Transfer tax at death and on gifts
|
Capital gains
taxation
|
Wealth, death, and gift tax receipts as % of total
tax revenuea
|
|
Australia
|
no
|
none
|
income
|
0.01
|
|
Austria
|
yes
|
inheritance
|
none
|
0.51
|
|
Belgium
|
no
|
inheritance
|
none
|
0.58
|
|
Canada
|
no
|
none
|
income
|
0.03
|
|
Denmark
|
yes
|
inheritance
|
separate
|
0.92
|
|
Finland
|
yes
|
inheritance
|
income
|
0.50
|
|
France
|
1982-87
|
inheritance
|
income
|
0.85
|
|
Germany
|
yes
|
inheritance
|
none
|
0.42
|
|
Greece
|
no
|
inheritance
|
none
|
0.94
|
|
Iceland
|
yes
|
inheritance
|
income
|
-
|
|
Ireland
|
1975-77
|
inheritance
|
separate
|
0.30
|
|
Italy
|
no
|
estate/inheritance
|
none
|
0.23
|
|
Japan
|
no
|
inheritance
|
income
|
1.19
|
|
Luxembourg
|
yes
|
inheritance
|
income
|
0.51
|
|
Netherlands
|
yes
|
inheritance
|
none
|
0.94
|
|
New Zealand
|
no
|
estate
|
none
|
0.19
|
|
Norway
|
yes
|
inheritance
|
income
|
0.61
|
|
Portugal
|
no
|
inheritance
|
none
|
0.83
|
|
Spain
|
yes
|
inheritance
|
income
|
0.49
|
|
Sweden
|
yes
|
inheritance
|
income
|
0.68
|
|
Switzerland
|
yes
|
estate/inheritance
|
income
|
3.06
|
|
Turkey
|
no
|
inheritance
|
income
|
0.19
|
|
United Kingdom
|
no
|
estate
|
none
|
0.64
|
|
United States
|
no
|
estate
|
income
|
0.77
|
Source: OECD (1988).
|
Country
|
Direct wealth taxation
|
Transfer tax at death and on gifts
|
|
Australia
|
no
|
none
|
|
Austria
|
no
|
none
|
|
Belgium
|
no
|
inheritance
|
|
Canada
|
no
|
none
|
|
Denmark
|
no
|
inheritance
|
|
Finland
|
no
|
inheritance
|
|
France
|
yes
|
inheritance
|
|
Germany
|
no
|
inheritance
|
|
Greece
|
no
|
inheritance
|
|
Iceland
|
no
|
inheritance
|
|
Ireland
|
no
|
inheritance
|
|
Italy
|
no
|
inheritance
|
|
Japan
|
no
|
inheritance
|
|
Luxembourg
|
no
|
inheritance
|
|
Netherlands
|
yesa
|
inheritance
|
|
New
Zealand
|
no
|
none
|
|
Norway
|
yes
|
none
|
|
Portugal
|
no
|
inheritance
|
|
Spain
|
yes
|
inheritance
|
|
Sweden
|
no
|
none
|
|
Switzerland
|
yesa
|
estate/inheritancea
|
|
Turkey
|
no
|
inheritance
|
|
United
Kingdom
|
no
|
estate
|
|
United
States
|
no
|
estate
|
Note: a Provincial (or canton) tax. Sources: European Commission (2014); Deloitte (2014); OECD (2018) and Cole (2015).
|
Taxpayer
type
|
Thresholds ($)
|
|
single person
|
74,000
|
|
married couple
|
121,000
|
|
Tax rate
schedule (%)
|
Tax base ($)
|
|
0.05
|
to 180,000
|
|
0.10
|
next 295,000
|
|
0.15
|
next 493,000
|
|
0.20
|
next 722,000
|
|
0.25
|
next 710,000
|
|
0.30
|
over 2,400,000
|
|
Exclusions
|
|
|
household effects
|
|
pensions/annuities
|
|
Ceiling
|
|
none
|
Source: OECD (1988).
|
|
Ratio of income tax
to family income (%)
|
Swiss wealth tax
|
% of families
paying wealth tax
|
|
% of income
|
Ratio to income tax
|
|
All families
|
9.6
|
1.0
|
0.10
|
44.3
|
|
A. Income class
($)
|
|
|
|
|
|
Under 15,000
|
-3.1
|
2.0
|
-
|
14.6
|
|
15,000-24,999
|
-3.2
|
0.4
|
-
|
23.7
|
|
25,000-49,999
|
1.6
|
0.2
|
0.14
|
32.7
|
|
50,000-74,999
|
5.9
|
0.4
|
0.06
|
46.3
|
|
75,000-99,999
|
7.6
|
0.5
|
0.07
|
58.2
|
|
100,000-249,999
|
11.5
|
0.9
|
0.07
|
77.8
|
|
250,000 and over
|
23.4
|
2.2
|
0.10
|
98.1
|
|
B. Wealth class
($)
|
|
|
|
|
|
Under 100,000
|
4.7
|
0.0
|
0.00
|
3.6
|
|
$100,000-249,999
|
7.6
|
0.0
|
0.01
|
89.6
|
|
$250,000-499,999
|
9.1
|
0.2
|
0.02
|
100.0
|
|
$500,000-749,999
|
10.3
|
0.7
|
0.07
|
100.0
|
|
$750,000-999,999
|
11.6
|
0.9
|
0.08
|
100.0
|
|
1,000,000-2,499,999
|
14.5
|
1.0
|
0.07
|
100.0
|
|
2,500,000-4,999,999
|
20.7
|
2.1
|
0.10
|
100.0
|
|
5,000,000 and over
|
25.1
|
3.8
|
0.15
|
100.0
|
|
C. Age class
|
|
|
|
|
|
Under 35
|
5.8
|
0.2
|
0.03
|
13.1
|
|
35-54
|
13.6
|
0.8
|
0.06
|
40.9
|
|
55-69
|
14.7
|
1.6
|
0.11
|
59.4
|
|
70 and over
|
10.0
|
2.4
|
0.24
|
67.7
|
|
D.
Household type
|
|
|
|
|
|
Married couple
|
13.4
|
1.2
|
0.09
|
50.4
|
|
Males, unmarried
|
13.6
|
1.1
|
0.08
|
36.3
|
|
Females, unmarried
|
6.8
|
0.6
|
0.09
|
36.1
|
|
E. Race or
ethnicity
|
|
|
|
|
|
White
|
13.8
|
1.3
|
0.09
|
52.9
|
|
African-American
|
5.4
|
0.3
|
0.05
|
19.8
|
|
Hispanic
|
5.0
|
0.3
|
0.06
|
20.4
|
|
Other
|
12.4
|
1.2
|
0.09
|
46.8
|
Note: * Based on the Canton of Zurich. Source: Author’s calculations from the 2016 SCF. The figures are based on the Swiss tax schedule as spelled out in Table 3 with brackets updated to 2016 dollars on the basis of the CPI-U.
|
|
|
Age group
|
Family type
|
Race
|
|
All
|
18-34
|
35-54
|
55-69
|
70+
|
Married couple
|
Unmarried male
|
Unmarried female
|
Whites and others
|
Blacks and Hispanics
|
|
Pre-tax
income
|
0.574
|
0.439
|
0.548
|
0.612
|
0.574
|
0.538
|
0.575
|
0.438
|
0.578
|
0.437
|
|
Original
post-tax income
|
0.532
|
0.407
|
0.504
|
0.572
|
0.537
|
0.491
|
0.530
|
0.404
|
0.537
|
0.403
|
|
New post-income/Swiss
wealth tax
|
0.528
|
0.406
|
0.501
|
0.568
|
0.528
|
0.487
|
0.525
|
0.403
|
0.533
|
0.401
|
Note: * Based on the Canton of Zurich. Source: Author’s calculations from the 2016 SCF. See text for details on tax calculations.
|
|
Baseline total wealth tax revenue (billions)
|
Exclude
|
Add
|
|
Home equity on principal home
|
Businesses
|
Trust funds
|
Defined contribution pension plans
|
Defined benefit pension wealth
|
|
All families
|
182.1
|
-17.0
|
-29.9
|
-3.8
|
-19.1
|
9.1
|
|
A. Income class ($)
|
|
|
|
|
|
|
|
Under 15,000
|
3.6
|
-17.5
|
-59.0
|
-0.2
|
-3.9
|
1.4
|
|
15,000-24,999
|
1.7
|
-40.8
|
-20.0
|
-1.6
|
-13.7
|
8.8
|
|
25,000-49,999
|
3.7
|
-47.3
|
-8.7
|
-2.3
|
-22.5
|
43.6
|
|
50,000-74,999
|
6.1
|
-30.7
|
-16.4
|
-3.7
|
-28.3
|
35.1
|
|
75,000-99,999
|
7.7
|
-28.9
|
-16.9
|
-0.1
|
-30.8
|
25.7
|
|
100,000-249,999
|
33.1
|
-22.6
|
-19.6
|
-3.8
|
-30.6
|
19.7
|
|
250,000 and over
|
107.1
|
-12.2
|
-34.8
|
-4.3
|
-14.7
|
2.2
|
|
B. Wealth class ($)
|
|
|
|
|
|
|
|
Under 100,000
|
0.0
|
-68.5
|
-2.7
|
0.0
|
-44.5
|
-
|
|
100,000-249,999
|
0.8
|
-71.5
|
-5.9
|
-0.4
|
-37.4
|
223.8
|
|
250,000-499,999
|
2.8
|
-60.5
|
-5.8
|
-1.8
|
-40.9
|
123.7
|
|
500,000-749,999
|
5.9
|
-57.9
|
-10.5
|
-1.9
|
-47.9
|
31.7
|
|
750,000-999,999
|
6.0
|
-40.9
|
-10.3
|
-2.4
|
-42.7
|
13.6
|
|
1,000,000-2,499,999
|
16.6
|
-23.9
|
-12.7
|
-1.7
|
-32.1
|
17.2
|
|
2,500,000-4,999,999
|
23.7
|
-25.0
|
-24.0
|
-2.1
|
-28.8
|
6.0
|
|
5,000,000 and over
|
107.2
|
-9.0
|
-36.9
|
-4.8
|
-11.3
|
1.0
|
|
C. Age class
|
|
|
|
|
|
|
|
Under 35
|
3.0
|
-12.3
|
-54.3
|
-9.5
|
-5.7
|
1.4
|
|
35-54
|
47.2
|
-17.7
|
-42.9
|
-3.0
|
-15.9
|
4.3
|
|
55-69
|
74.7
|
-16.9
|
-25.5
|
-2.8
|
-22.2
|
11.8
|
|
70 and over
|
38.1
|
-16.8
|
-20.7
|
-6.3
|
-18.1
|
10.3
|
|
D. Household type
|
|
|
|
|
|
|
|
Married couple
|
138.0
|
-16.2
|
-30.3
|
-3.2
|
-19.8
|
8.5
|
|
Males, unmarried
|
14.9
|
-15.4
|
-38.0
|
-5.5
|
-11.8
|
7.2
|
|
Females, unmarried
|
10.2
|
-29.8
|
-12.8
|
-9.9
|
-20.6
|
19.8
|
|
E. Race or ethnicity
|
|
|
|
|
|
|
White
|
150.2
|
-16.5
|
-28.8
|
-4.0
|
-19.6
|
8.8
|
|
African-American
|
2.5
|
-19.0
|
-46.1
|
-3.0
|
-18.5
|
43.4
|
|
Hispanic
|
2.2
|
-24.1
|
-58.2
|
-2.4
|
-8.1
|
6.2
|
|
Other
|
8.1
|
-24.1
|
-39.0
|
-0.3
|
-13.5
|
4.8
|
|
Memo: Post-income and wealth tax Gini coeff. for all
households
|
|
|
|
|
|
|
|
|
0.528
|
0.528
|
0.529
|
0.528
|
0.529
|
0.528
|
Note: * Based on the Canton of Zurich. Source: Author’s calculations from the 2016 SCF. See text for details on tax calculations.
Source: Authors’ calculations.
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June, 2020
II/2020 |
