Wealth tax
An idea that appeals to many on the left, given the wealth disparities in many countries. Inheritance taxes are a form of wealth tax and played their part in reducing disparities in the first half of the 20th century, by eating into the landed wealth of European aristocracies. More ambitious politicians hope to impose annual levies on the assets of the wealthy. However, the rich are good at tax avoidance and the revenues raised from such taxes tend to be low as a proportion of GDP. And many economists think that taxes on capital distort the economy by encouraging consumption rather than saving and investment.
