Wealth taxes are an old idea that has failed. Peter Suderman writes:
Sweden’s wealth tax, for example, was frequently blamed for capital flight and a depressed rate of national entrepreneurship. Relative to other European nations, Swedes were less likely to own their own business, and those who did often took their money elsewhere rather than reinvest it at home. The founder of Ikea, for example, moved much of his wealth into offshore foundations that shielded the money from the tax.
I say it was blamed because a little more than a decade ago, Sweden eliminated its wealth tax. The move was easy to make, because the government lost essentially no revenue. As The Financial Times reported, the elimination of the tax had “virtually no effect of government finances.” So much for making the rich pay their share.
Nor is Sweden an outlier in its decision to nix a tax on wealth. European countries that have imposed wealth taxes have largely given up on them; of the dozen OECD nations that had wealth taxes in 1990, just four still have the tax on the books. Warren wants the U.S. to adopt an idea that has been tried and discarded.
[Peter Suderman, “Elizabeth Warren’s Wealth Tax Is a Policy Stunt that Other Countries Have Tried and Discarded,” Reason, February 1]