A recent study by the Tax Justice Network shows that governments could generate an additional $2.1 trillion annually by implementing a wealth tax similar to that imposed by Spain, which targets the richest 0.5 percent of households.
The study calculates the potential revenues of individual countries if they impose a modest tax rate of between 1.7 percent and 3.5 percent on the wealth of their richest 0.5 percent. The tax will focus only on the wealthiest part of household assets rather than their entire wealth.
The study notes all categories of wealth, eliminating exemptions that dilute the effectiveness of Spanish law. The results indicate that each country could, on average, raise an amount equivalent to 7 percent of its annual budget.
Source (Al Arabiya.net Website, Edited)
