IDEAS home Printed from https://ideas.repec.org/a/bal/3seasj/2661-515020212410.html
   My bibliography  Save this article

The Economic Basis Of Wealth And Its Taxation

Author

Listed:
  • Mykhailo Sverdan

    (National University of Life and Environmental Sciences of Ukraine, Ukraine)

Abstract

The purpose of this paper is to examine the current problems of wealth, which is due to the current steady trends of increasing wealth and the increasing number of wealthy people. The aim of the paper is to define the essence, prerequisites for the emergence and development of wealth, as well as to reflect the historical aspects of the evolution of wealth and its present state. The topic of the article is conditioned by the necessity to reveal modern stratification of social strata by the level of wealth, formation of society's wealthy class and its growth, processes of wealth creation and multiplication. At the same time, the purpose of the article is to study wealth as an object of taxation. In this connection, the economic essence of wealth tax and prerequisites for its introduction were considered, the specifics of functioning of wealth tax in the market economy were determined, and the most important features of functioning of wealth tax were revealed. Methodology. A correct analysis of the social structure of society in terms of material well-being makes it possible to assess the efficiency of the economy and the quality of public policy in the system of creation and distribution of public income, public goods and wealth. Without the results of these calculations, fatal errors arise in the choice of state priorities of socio-economic policy and in making optimal decisions in the financial sphere. The study is based on the comparison of wealth tax data in different countries. Results. The question and modern specificity of wealth is explored. The value of wealth to society and the state is determined. Wealth tax is an effective fiscal instrument of the state in the distribution of state revenues. Wealth tax exists in many countries in various forms. Practical implications. Possibilities of increasing welfare and increasing wealth are considered. An adequate assessment of wealth and well-being will allow the state to conduct a balanced and effective socio-economic and financial policy to stabilize society and adopt a stable social order. The financial essence of the wealth tax and the prerequisites for its introduction were studied. The specifics of functioning of wealth tax in the market socially oriented economy are considered. Value/originality. It was found that wealth is a complex, multifaceted category, which can be characterized as a specific feature of the socio-economic structure of society, which determines its state, results, dynamics and trends of development. Wealth characterizes the ability to achieve a positive result (effect) in the market conditions of management and use of socio-economic potential available in the society, which indicates the level of its civilizational development. The features of functioning of wealth tax in different countries of the world are considered. The use of wealth tax as a fiscal tool in the tax system of the state was proposed.

Suggested Citation

  • Mykhailo Sverdan, 2021. "The Economic Basis Of Wealth And Its Taxation," Three Seas Economic Journal, Publishing house "Baltija Publishing", vol. 2(4).
    • Handle: RePEc:bal:3seasj:2661-5150:2021:2:4:10
    DOI: 10.30525/2661-5150/2021-4-10
    as

    Download full text from publisher

    File URL: http://www.baltijapublishing.lv/index.php/threeseas/article/view/1536/1552
    Download Restriction: no
    File URL: http://www.baltijapublishing.lv/index.php/threeseas/article/view/1536
    Download Restriction: no
    File URL: https://libkey.io/10.30525/2661-5150/2021-4-10?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Florian Scheuer & Joel Slemrod, 2021. "Taxing Our Wealth," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 207-230, Winter.
    2. Cohen, Daniel & Piketty, Thomas & Saint-Paul, Gilles (ed.), 2002. "The Economics of Rising Inequalities," OUP Catalogue, Oxford University Press, number 9780199254026.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hellwig, Christian & Werquin, Nicolas, 2022. "A Fair Day's Pay for a Fair Day's Work: Optimal Tax Design as Redistributional Arbitrage," CEPR Discussion Papers 16863, C.E.P.R. Discussion Papers.
    2. Javier Olivera & Philippe Kerm, 2022. "Public support for tax policies in COVID-19 times: evidence from Luxembourg," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1395-1418, December.
    3. David Burgherr, 2021. "The costs of administering a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 677-697, September.
    4. Kristoffer Berg & Shafik Hebous, 2021. "Does A Wealth Tax Improve Equality of Opportunity?," CESifo Working Paper Series 9174, CESifo.
    5. Carmen M. Reinhart & Franziska L. Ohnsorge & Kenneth S. Rogoff & M. Ayhan Kose, 2022. "The Aftermath of Debt Surges," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 637-663, August.
    6. Antonio Ciccone & Federico Cingano & Piero Cipollone, 2004. "The Private and Social Return to Schooling in Italy," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 63(3-4), pages 413-444, December.
    7. Robin Boadway & Kevin Spiritus, 2021. "Optimal Taxation of Normal and Excess Returns to Risky Assets," Tinbergen Institute Discussion Papers 21-025/VI, Tinbergen Institute.
    8. Lu, Kelin, 2022. "Overreaction to capital taxation in saving decisions," Journal of Economic Dynamics and Control, Elsevier, vol. 144(C).
    9. Robin Boadway & Pierre Pestieau, 2022. "The Wealth Tax and the Tax Mix," Canadian Tax Journal, Canadian Tax Foundation, vol. 70(Supplemen), pages 185-208.
    10. Arun Advani & Hannah Tarrant, 2021. "Behavioural responses to a wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 509-537, September.
    11. Hellwig, Christian & Werquin, Nicolas, 2022. "Using Consumption Data to Derive Optimal Income and Capital Tax Rates," TSE Working Papers 22-1284, Toulouse School of Economics (TSE), revised Jul 2024.
    12. Fuest, Clemens, 2021. "Zur Debatte über die Einführung einer Nettovermögensteuer in Deutschland," Studien, Stiftung Familienunternehmen / Foundation for Family Businesses, number 250020, March.
    13. Boadway,Robin & Cuff,Katherine, 2022. "Tax Policy," Cambridge Books, Cambridge University Press, number 9781108949453.
    14. Antoine Ferey & Benjamin B. Lockwood & Dmitry Taubinsky, 2024. "Sufficient Statistics for Nonlinear Tax Systems with General Across-Income Heterogeneity," American Economic Review, American Economic Association, vol. 114(10), pages 3206-3249, October.
    15. Marius Brülhart & Jonathan Gruber & Matthias Krapf & Kurt Schmidheiny, 2022. "Behavioral Responses to Wealth Taxes: Evidence from Switzerland," American Economic Journal: Economic Policy, American Economic Association, vol. 14(4), pages 111-150, November.
    16. Nancy Folbre & Marta Murray-Close & Jooyeoun Suh, 2018. "Equivalence scales for extended income in the U.S," Review of Economics of the Household, Springer, vol. 16(2), pages 189-227, June.
    17. Samira Marti & Isabel Z Martínez & Florian Scheuer, 2023. "Does a progressive wealth tax reduce top wealth inequality? Evidence from Switzerland," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 39(3), pages 513-529.
    18. John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2003. "The Survival of the Welfare State," American Economic Review, American Economic Association, vol. 93(1), pages 87-112, March.
    19. Annette Alstadsæter & Marie Bjørneby & Wojciech Kopczuk & Simen Markussen & Knut Røed, 2022. "Saving Effects of a Real-Life Imperfectly Implemented Wealth Tax: Evidence from Norwegian Micro Data," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 63-67, May.
    20. Alexander Krenek & Margit Schratzenstaller-Altzinger & Klaus Grünberger & Andreas Thiemann, 2021. "INTAXMOD – Inheritance and Gift Taxation in the Context of Ageing," WIFO Working Papers 645, WIFO.

    More about this item

    Keywords

    wealth; taxation; economy; property; enrichment; well-being; consumption; wealth tax;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bal:3seasj:2661-5150:2021:2:4:10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anita Jankovska (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.