Every Country Which Tried and Abolished Wealth Taxes – Guido Fawkes

Every Country Which Tried and Abolished Wealth Taxes

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Starmer again failed to rule out a wealth tax at PMQs. Countries – mostly European – have tried broad wealth taxation. The vast majority have repealed them:

• Ireland: Scrapped in 1978.
• Austria: Scrapped in 1994.
• Germany: Scrapped in 1997.
• Denmark: Scrapped in 1997.
• the Netherlands: Scrapped in 2001.
• Iceland: Scrapped in 2006.
• Luxembourg: Scrapped in 2006.
• Finland: Scrapped in 2006.
• Sweden: Scrapped in 2007.
• France: Scrapped in 2018.

Wealth taxes where introduced resulted in the collection of almost no revenue and caused massive capital flight. Sweden’s wealth tax lasted almost 100 years before it was eliminated. In the year before revenue amounted to just 0.16% of GDP and its abolition had “virtually no effect” on government finances. Millionaires and billionaires stayed away, though…

Three European countries now levy a wealth tax:

• Norway: A small wealth tax increase caused 30 multimillionaires to emigrate in 2022, more than the total number of large taxpayers who left during the previous decade and a half. Flight…
• Spain: Levied on 3.5% of assets it brings in less than 1% of total tax revenue. Madrid and Andalucia have introduced 100% exemptions.
• Switzerland: Levied by cantons – rates vary from 0.13% to 1.1%. The taxes are voluntary as financial wealth is self-reported. Some studies have found a 1% drop in the wealth tax rate raises reported wealth by 43%. Raising tax take…

Former Labour Chancellor Dennis Healey said: “We had committed ourselves to a wealth tax; but in five years I found it impossible to draft one which would yield enough revenue to be worth the administrative cost and the political hassle.” Good luck to Reeves and Starmer…