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Is it possible to tax the super-rich?

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  • Summers, Andy

Abstract

A major constraint on progressive tax reform is that somehow, the richest always seem to find ways not to pay. Is this inevitable? Focusing on the UK context, I begin by reviewing two past attempts to raise taxes on those at the top – the changes to the top rate and dividend rates of income tax, and reforms to ‘non-dom’ tax status – and explore whether and why these policies failed. I then discuss three key policy areas that must be addressed to successfully increase taxes on the super-rich: capital taxes (on capital gains, inheritances and gifts), the challenges posed by international mobility of assets and individuals, and trusts. Reform of these areas could directly raise additional revenue from the super-rich and would also provide a backstop needed to support more familiar levers such as increasing the top income tax rate

Suggested Citation

  • Summers, Andy, 2022. "Is it possible to tax the super-rich?," LSE Research Online Documents on Economics 121990, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:121990
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    File URL: http://eprints.lse.ac.uk/121990/
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    References listed on IDEAS

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    1. Sarah Perret, 2021. "Why were most wealth taxes abandoned and is this time different?," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 539-563, September.
    2. Arun Advani & Helen Hughson & Hannah Tarrant, 2021. "Revenue and distributional modelling for a UK wealth tax," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 699-736, September.
    3. Emma Chamberlain, 2021. "Who should pay a wealth tax? Some design issues," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 599-613, September.
    4. Karen Rowlingson & Amrita Sood & Trinh Tu, 2021. "Public attitudes to a wealth tax: the importance of ‘capacity to pay’," Fiscal Studies, John Wiley & Sons, vol. 42(3-4), pages 431-455, September.
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    More about this item

    Keywords

    tax policy; the super-rich; planning and avoidance; behavioural responses;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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