Wealth Tax

Wealth tax is a tax based on the market value of owned assets. Although many developed countries choose to tax wealth, the United States has historically favored taxing income. Recently, however, the immense and increasing disparity in wealth in the United States—as of 2018 the wealthiest 10% owned 70% of the country’s wealth while the richest 1% owned 32%, according to Federal Reserve Board—caused politicians such as Bernie Sanders and Elizabeth Warren to propose a wealth tax in the run-up to the 2020 Presidential election.