Wealth taxes are assessed on a stock of assets instead of a flow such as income or sales.

Question

Quizplus · Accepted Answer

Wealth taxes are based on the total value of assets that an individual or household possesses, including real estate, financial holdings, and personal property. They are not tied to income or sales, which are types of flow that measure the amount of money earned or exchanged within a certain period of time. The purpose of a wealth tax is to reduce economic inequality by transferring some of the wealth from the richest members of society to the government, which can then use it to fund social programs or public goods.

Wealth Taxes Are Assessed on a Stock of Assets Instead