Macroeconomics

Inequality

Tax policy

Economics

Tax reform

Tax deferral

Mathematics

Political science

Repeal

Public economics

Economic policy

State income tax

Mathematical analysis

Revenue

Finance

Tax revenue

Gross income

Fiscal Studies

Wealth taxes are increasingly being considered as an option in policy and academic circles to collect additional revenue and address inequality. One objection that is often raised, however, is that they seem to have failed in countries that tried them, with most OECD countries abandoning their wealth taxes in recent decades. This paper gives an overview of OECD countries’ experiences with wealth taxes and explores the different factors that have led to their repeal in most countries. The paper also discusses whether the situation might be different today and what the implications for tax policy might be.

Why were most wealth taxes abandoned and is this time different?