Three Seas Economic Journal

56

Vol. 2 No. 4, 2021
DOI: https://doi.org/10.30525/2661-5150/2021-4-10

THE ECONOMIC BASIS OF WEALTH AND ITS TAXATION 
Mykhailo Sverdan1 

Abstract. The purpose of this paper is to examine the current problems of wealth, which is due to the current steady 
trends of increasing wealth and the increasing number of wealthy people. The aim of the paper is to define the 
essence, prerequisites for the emergence and development of wealth, as well as to reflect the historical aspects 
of the evolution of wealth and its present state. The topic of the article is conditioned by the necessity to reveal 
modern stratification of social strata by the level of wealth, formation of society's wealthy class and its growth, 
processes of wealth creation and multiplication. At the same time, the purpose of the article is to study wealth as 
an object of taxation. In this connection, the economic essence of wealth tax and prerequisites for its introduction 
were considered, the specifics of functioning of wealth tax in the market economy were determined, and the 
most important features of functioning of wealth tax were revealed. Methodology. A correct analysis of the social 
structure of society in terms of material well-being makes it possible to assess the efficiency of the economy and 
the quality of public policy in the system of creation and distribution of public income, public goods and wealth. 
Without the results of these calculations, fatal errors arise in the choice of state priorities of socio-economic policy 
and in making optimal decisions in the financial sphere. The study is based on the comparison of wealth tax data 
in different countries. Results. The question and modern specificity of wealth is explored. The value of wealth to 
society and the state is determined. Wealth tax is an effective fiscal instrument of the state in the distribution of 
state revenues. Wealth tax exists in many countries in various forms. Practical implications. Possibilities of increasing 
welfare and increasing wealth are considered. An adequate assessment of wealth and well-being will allow the 
state to conduct a balanced and effective socio-economic and financial policy to stabilize society and adopt a 
stable social order. The financial essence of the wealth tax and the prerequisites for its introduction were studied.  
The specifics of functioning of wealth tax in the market socially oriented economy are considered. Value/originality. 
It was found that wealth is a complex, multifaceted category, which can be characterized as a specific feature of 
the socio-economic structure of society, which determines its state, results, dynamics and trends of development. 
Wealth characterizes the ability to achieve a positive result (effect) in the market conditions of management and 
use of socio-economic potential available in the society, which indicates the level of its civilizational development. 
The features of functioning of wealth tax in different countries of the world are considered. The use of wealth tax as 
a fiscal tool in the tax system of the state was proposed. 

Key words: wealth, taxation, economy, property, enrichment, well-being, consumption, wealth tax.

JEL Classification: E62, H22 

Corresponding author:
1 National University of Life and Environmental Sciences of Ukraine, Ukraine
E-mail: sverdanof@ukr.net 
ORCID: https://orcid.org/0000-0002-1773-3919 

1. Introduction
The economy has always been an integral part of

human life and society. Man has always been and  
remains the central figure of the economy. Outside 
of man there is no economy and there cannot be any 
economy. The economy arose with man, with the help 
of man, and in the name of man. Neither society nor 
humans can exist without the satisfaction of needs.  
The economic activity of mankind is directed to the 
creation of certain goods, by means of which mankind 
creates comfort and well-being for itself. 

The greatest engine of human history is the production 
of economic goods. Society can exist and develop only 
through the constant renewal of production processes, 
so economics and human economic activity are the 
foundation of any society. 

With the advent of productive employment 
and purposeful activity, people simultaneously 
developed an interest in the results of their own labor.  
The transformation of the common man into "homo 
economicus" changes his view of his own status and 
well-being. Humans begin to strive to maximize the 

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0



Three Seas Economic Journal

57

Vol. 2 No. 4, 2021
benefits they receive and make appropriate choices 
because of the importance of economic outcomes; 
they become interested in their own well-being and its 
enhancement. So, economics is an economy of needs, of 
interests, of goods. 

The study of the economic sphere of social activity 
seeks to determine the basic principles of production 
and distribution of economic goods in order to achieve 
prosperity. Welfare economics focuses on the study of the 
ways in which economic activity and social interaction 
are organized to ensure well-being. This distribution of 
economic resources and goods is considered optimal 
when overall welfare is maximized. The goal of welfare 
policy is to achieve an adequate standard of living for 
society as a whole. 

The history of the development of economics is 
the history of the development of the science of 
prosperity and wealth. Since the time of Xenophon 
and Aristotle there have been two concepts: economics 
and chrematistics; economics is seen as the science of 
wealth, its formation and distribution. 

Any wealth is the appropriate level of wealth achieved 
by each individual. Wealth is determined by an 
individual's economic interests and needs and is limited 
by the ratio of income to expenses. 

Society is unequally provided for in terms of its social 
structure – stratification. There is a class hierarchy 
in society. Society and its social stratification are an 
objective and natural result of human economic activity. 
Class division forms the basis of economic inequality 
in modern societies. Class has a significant impact 
on people's lives and economic well-being. In large 
traditional societies and in modern market-developed 
countries, stratification is viewed through the prism 
of economic profile as the level of well-being (wealth) 
achieved. 

The specific nature of the market objectively 
determines the uneven distribution of economic goods 
in society. The distribution of income and wealth always 
remains too unequal and constantly tilts toward the 
rich. Wealth in modern conditions is turning into an 
economic epidemic. Rich people are getting even richer. 
In addition, there is a clear trend toward an increase in 
the number of wealthy people. Thus, it is an economic 
fact that there is a disproportionate distribution of 
wealth in society.

At the same time, a popular slogan is that the economy 
must be efficient and fair. The question of welfare has 
always been associated with the problem of justice, 
which, in turn, has been linked to the distribution 
of income and wealth. Given the diverse nature of 
wealth, it is logical to ask: Is the unequal distribution of 
wealth among people really an economic problem for  
society?

To improve this situation, taxation of the wealthy 
has been used. A stronger tax burden has always 
been initiated for such persons. In every society 

there has always been a category of wealthy people 
with considerable wealth who are capable of paying  
wealth tax. 

2. Economics and public welfare
The development of market capitalism, the spread

of selfishness, and the desire for luxury lead to an even 
more unequal distribution of economic wealth and 
property stratification in society. The rich become 
even richer and continue to increase their wealth. 
Wealth becomes the defining indicator and function 
of the market economic system. The economy, in the 
content of its natural purpose, is a thirst for wealth, for 
enrichment; this is its essence (Carter, 1968). 

Wealth is not a cause for criticism or envy.  
The concept of wealth is related to the concept of social 
inequality. Attitudes toward rich people differ from 
one strata of the population to another and from one 
socio-economic setting or historical era to another  
(Sturtevant, 1877). 

Wealth is a socio-economic phenomenon inherent 
in every society throughout the existence and 
development of civilization. Wealth indicates the 
existence of an affluent stratum of the population, which 
is a direct consequence of the radical stratification of 
social strata by level of well-being (Atkinson, 1975). 
The economic status of individuals has always differed 
in society throughout the historical development 
of mankind. Wealth is the direct logical result of 
differences in the material situation of individuals and 
families, and therefore has always existed and exists in 
all societies. At the same time, the more economically 
advanced and progressive society is, the more obvious 
is the presence of a well-to-do population, more rich 
people, the greater the material stratification and 
economic inequality of society (Cohen, Piketty, Saint-
Paul, 2002). 

The issue of the presence of wealthy people and the 
formation of appropriate elite groups is one of the 
most pressing in the modern socio-economic structure 
of society. Wealth is characterized by a significant 
accumulation of property and large consumption of 
public goods (Abdelnour, Whittaker, 2012). 

Economic well-being has always been a measure of 
one's place in society and has served to confirm social 
status (Cheung, 1978). The problem of wealth is 
a rather complex, multifaceted social issue. The reasons 
for its emergence are complex and comprehensive, 
based on economic, social, political and other 
circumstances. Economic activity and public policy are 
aimed at improving social well-being, increasing the 
material well-being of people. This is associated with 
the accumulation of property and increasing wealth, 
which in turn forms a certain class of wealthy people.  
In modern conditions this is stimulated by certain 
actions of the state, pursuing macroeconomic goals and 



Three Seas Economic Journal

58

Vol. 2 No. 4, 2021
solving problems of social stabilization and development 
of society. 

The economy is the largest part of social life. 
Regardless of any conditions or circumstances, part of 
the lives of individuals is spent in the economic sphere. 
Individuals are constantly receiving certain revenues 
and expenditures, which are always aimed at improving 
their own well-being. People are interested in earning as 
much income as possible or acquiring certain property, 
in spending money on various acquisitions that can 
improve their well-being (Adler, 2019). The goal of 
such attitudes and actions of individuals is to acquire 
personal property, create their own wealth, achieve 
a better level of material well-being and ensure a higher 
standard of living. Welfare and wealth act as a specific 
goal of individuals' labor activity, constituting its main 
content and financial and economic interest. 

Economic activity is directed toward the production 
of various goods and toward the enhancement of 
human well-being, increasing wealth. This applies to all 
individuals and social groups. Wealthy people who have 
available wealth try to make it even greater, rich people 
try to become even richer. And this is quite logical and 
natural. Even in the case of poverty, economics tries to 
solve this problem and make low-income individuals 
wealthy with a sufficient level of well-being. 

However, in the overall economic background of 
society, only a small number of people become rich. 
This is explained by the fact that in the process of 
distributing economic goods, individuals receive their 
unequal share. The distribution does not have equal 
and equitable proportions of their appropriation, 
direction, and placement. As a result, some individuals 
receive a satisfactory amount, others receive a small 
amount, and some categories of individuals appropriate 
the largest amount, allowing them to greatly increase 
their wealth, increase their assets, and accumulate and 
multiply wealth. 

In today 's context, wealth is defined as a certain level 
of provision and maintenance of a way of life that far 
exceeds the social average and is characterized by the 
importance of money and property. Because of the 
abundance of wealth, wealthy people are able to provide 
for themselves a way of life that far exceeds the level of 
minimum necessity or the average socially established 
standards (Hore-Lacy, 1985). A wealthy person is 
a person who has significant values in relation to other 
members of society (Little, 1950). 

Social civilization has gone through many different 
stages of economic development. Scientific and 
technological progress has contributed significantly 
to economic growth. All actions and measures have 
contributed to economic development and the growth 
of well-being in society (Gornick, Jäntti, 2013). 

Wealth is not a new or original concept. Wealth 
as an economic phenomenon has existed for 
a long time, having passed a significant evolutionary 

path and undergone significant conceptual and 
structural changes. At each stage of transformational 
development, wealth is characterized by appropriate 
specific properties, reflecting its formal and substantive  
essence. Economics itself involves the creation and 
accumulation of wealth. Economics is the science of 
prosperity and wealth; people work to improve their 
well-being and enrich themselves (improving their  
lives is a natural desire inherent in people). Society 
strives to improve people's well-being. Wealth always 
attracts much more economic interest than other  
market institutions. 

Issues of enrichment, property accumulation and 
wealth creation in the economy are important and 
relevant, especially in modern market conditions.  
The tendency to increase wealth and enrichment, 
to increase wealth is quite obvious and is constantly 
accelerating in society (Mols, Jetten, 2017). 

The economic activity of society is aimed at ensuring 
the welfare of all people. The economic system seeks to 
create sufficient economic goods to meet their needs 
and provide material living conditions. However, the 
unequal distribution of economic goods does not  
ensure the same level of well-being in society. Moreover, 
quite a small part of society becomes rich people. This is 
due to various factors – economic, social, political, etc. 
And to no lesser extent the level of welfare and wealth 
depends on the individuals themselves. In general, the 
progress of civilization helps to stimulate economic 
growth and increase people's general well-being.  
The economic laws of the market stimulate economic 
development and the production of economic goods, 
but do not ensure their equal distribution in society. 
Social progress is the process of improving the essential 
forces of humanity, and in the economic context, it is the 
satisfaction of material needs and economic interests. 
Social progress has certain regularities and trends.  
One such law is the acceleration of the rate of economic 
progress. Another law is the tendency for unequal social 
progress, which in an economic context manifests 
itself in the unequal distribution and consumption of 
economic goods, different levels of wealth and wealth 
(Robson, 1924). All wealth always has a value. 

Each person enters into various economic 
relationships with other people. Human beings depend 
on the economy (Marriott, 1923). Whatever a person's 
level of wealth, he still owns something and cherishes 
that little, just as the owner of capital cherishes 
his wealth. A person cares about the preservation 
and multiplication of his property, its careful use.  
The greater the wealth, the greater the concern for it. 
Wealth, on the other hand, requires constant control on 
the part of the individual, because its diminution can 
lead to total loss. As a rule, irrevocably. 

In order to establish a relative economic equilibrium 
in society, the state intervenes, which with the help of 
certain levers tries to correct the situation. There can 



Three Seas Economic Journal

59

Vol. 2 No. 4, 2021
be no effective market economy without an active 
regulatory role of the state. The economic policy of 
the state is important in the context of public welfare. 
The most important economic goals of the state are to 
promote economic growth while ensuring economic 
efficiency. This is especially true in today 's socially 
oriented market economy. For this purpose, the state 
redistributes public revenues to maintain social stability. 
Taxation is an effective means for this purpose. 

The social structure of society is reflected in social 
strata, which are in different economic situations, 
have different levels of material security, income and  
wealth. The category of wealthy people is one of the 
social strata whose well-being is defined as wealth, 
characterized by an inflated level of acquired wealth 
and accumulated property, the receipt of a significant 
amount of income. In this regard, the phenomenon of 
wealth of the wealthy, its social value and purpose are of 
relevant interest (Vanberg, 2001). 

Any level of prosperity can be considered accumulated 
wealth. And any wealth (both in the aggregate and in  
its various elements) can be taxed. 

3. Taxation of wealth
A fair distribution of wealth is usually required for

people with lower levels of wealth. Non-market levers 
and mechanisms are already used to improve social 
welfare, in the context of achieving relative economic 
equality and conditional social justice. These are fiscal 
instruments used by the state to redistribute state 
revenues. Through taxation, the state intervenes in 
economic processes, accumulates revenues and finances 
expenditures aimed at improving the welfare of certain 
segments of society. Fiscal instruments are acceptable 
and necessary, but excessive redistribution is in fact 
economically inefficient and socially inappropriate. 

The wealth tax is based on a fiscal orientation and is 
aimed at taxing only the wealthy. It is imposed on the 
total amount of private property held by individuals. 
As a rule, the object of taxation in the context of 
different countries where the wealth tax is levied, has 
a similar algorithm of calculation, although in each 
country the set of its components is not the same and 
is set independently. Wealth tax usually applies to the 
property of individuals, although in practice it can also 
apply to businesses. For example, in countries such as 
Belgium and Canada, only businesses pay wealth tax. 
In France, since the introduction of the wealth tax, 
it was initially paid by individuals and legal entities, 
but very soon the fiscal focus shifted to individuals  
(Mas Montserrat, 2020). 

Wealth tax belongs to the group of property taxes. 
Property has become the main object of taxation. 
Property taxation has been around for about as long 
as modern civilization itself. Taxes under which 
property is taxed are among the oldest taxes known to 

most modern states. Property taxation has undergone 
considerable transformation over a long period of its 
existence, the history of property taxation is extremely 
varied. This also applies to the wealth tax, which can 
be fully considered the main form of the state's fiscal 
impact on society (Scheuer, Slemrod, 2021). 

Property is the primary basis for the formation of 
a wealth tax. Analyzing the dynamics and trends of 
fiscal practice, we can state that there have always been 
attempts to introduce certain universal taxes, which 
include a tax on wealth. The complex expression of 
accumulated property in only one holistic object of 
taxation has its own characteristics and advantages; 
no other tax paid by the society has similar analogues 
(Sverdan, 2020). 

Wealth tax occupies a certain place in the system of 
income and wealth distribution. Its fiscal importance 
in the composition of tax revenues of the budget is 
small, only in some countries it amounts to 3-7%, in 
most countries it does not reach even 1% (Table 1). 
However, this is no reason to ignore or criticize it, given 
the specifics of the wealth taxpayer population and the 
object and level of taxation.

Wealth taxation is a common form of the state's fiscal 
influence on the property of wealthy individuals whose 
material well-being is characterized by a significant 
level of wealth and the amount of accumulated 
economic goods. Taxation of wealth is not just one 
of the oldest, but the main form of manifestation of 
the state's fiscal power in society. Wealth tax has been 
and is currently levied in many countries of the world. 
Over a long period of several millennia, the wealth tax 
has undergone many transformations, which accounts 
for the extraordinary diversity of its fiscal models 
(Sleeman, 1988). The relevance of the economic 
phenomenon of wealth in any form as a real and 
potential object of taxation is not reduced and does not 
lose its significance. In modern conditions the tax on 
wealth, regardless of its qualification and motivation 
of introduction, is quite widespread, intensively and 
effectively used in various forms in many countries. 

The wealth tax is the most variable in modern 
tax systems because it is often subject to various 
modifications. The changes are most often not 
nominal adjustments to individual elements, but 
the transformation of the tax model itself and the 
introduction of its new or updated fiscal structure, 
depending on the essence of the concept embedded 
in the economic sense of wealth. This explains why in 
modern market conditions there are various models of 
wealth tax, which over time are also optimized, modified 
and adapted as much as possible to the specific socio-
economic situation; the wealth tax has a fairly large 
scale, scope and methods of application. 

Net wealth taxes are periodic taxes on an individual's 
wealth minus debt. The concept of a net wealth tax is 
similar to an estate tax. But instead of taxing only real 



Three Seas Economic Journal

60

Vol. 2 No. 4, 2021

estate, it covers all the wealth an individual owns. Only 
three European countries levy a net wealth tax, namely 
Norway, Spain and Switzerland. France and Italy levy 
a wealth tax on individual assets, but not on the net 
wealth of the individual as such.

Norway levies a net wealth tax of 0.85% on the wealth 
of individuals over NOK 1.5 million (152,000 euros 
or $170,000), with 0.7% going to municipalities and 
0.15% to the central government. Under measures 
related to COVID-19, individual business owners and 
shareholders who make a loss in 2020 are eligible for 
a one-year deferral of wealth tax. 

The net wealth tax in Spain is a progressive tax ranging 
from 0.2% to 3.75% on wealth over 700,000 euros 
($784,000; some regions are lower), with rates varying 
significantly among Spain's autonomous regions 
(Madrid has a 100% relief ). Spanish residents are 
taxed worldwide, while non-residents pay tax only on 
assets located in Spain (Durán, Esteller-Moré, Mas-
Montserrat, 2019). 

In Switzerland net wealth tax is levied at cantonal 
level and applies to assets around the world (with the 
exception of real estate and permanent establishments 
located abroad). Tax rates and benefits vary considerably 
between cantons. 

The classic traditional version of a wealth tax would 
impose a tax on the total accumulated wealth of 
individuals. This model of wealth tax has survived in 
few countries today. An analogue of this tax is used 
in Colombia. At the same time, Colombia has the 
highest property division at which the wealth tax is 
activated – $1.5 million. For 2019-2021, the new wealth 
tax is set at 1% on net wealth (shares of Colombian firms, 
receivables of Colombian debtors, certain portfolio 
assets, and financial leases are exempt from taxation).  

In addition, after the COVID-19 pandemic, taxes on  
the salaries, dividends, and estates of the wealthiest 
citizens are expected to increase, as well as a one-time 
solidarity tax on high incomes (Londoño-Vélez, Ávila-
Mahecha, 2021). 

Today it is common in theory and practice to  
identify wealth with its individual elements, which 
are often real estate or financial assets, as well as high 
(super-high) income. n France, up to and including 
2017, wealth tax was levied on the total assets of 
individuals (Impôt de solidarité sur la fortune). Since 
2018, a wealth tax has been imposed only on real estate, 
and financial assets are excluded from the tax burden. 
In Italy there are two types of wealth tax – separately 
on real and financial assets, for which different levels of  
tax burden (tax rates) are set (Sverdan, 2021). 

An alternative to the wealth tax in terms of its 
individual elements is the widespread use of luxury 
taxes (in particular on luxury real estate, certain types 
of vehicles, etc.). Significant modifications of the wealth 
tax have taken place in many other countries. 

As of 2018, France has switched to a unified wealth  
tax scheme. Instead of the classic model of wealth 
taxation, real estate taxation has been introduced. 
Financial assets and luxury goods are exempt from 
taxation. 

In the Netherlands, for a long time until 2000, 
there was a classic version of the wealth tax 
(vermogensbelasting). Today there is another tax called 
vermogensrendementheffing. It is essentially an income 
tax, but it qualifies as a wealth tax because it does not 
take into account actual income. Up to and including 
2016, the tax rate was one flat rate of 1.2% (taxing 
30% above the assumed 4% yield). Beginning in 2017, 
the tax rate increases as individuals' wealth increases:  

Table 1 
Wealth tax, % of Tax Revenues* 

Country 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Argentina 1,08 1,14 1,09 0,94 0,92 1,00 1,02 0,99 0,79 0,71 0,36 0,53
Belgium 0,16 0,14 0,15 0,16 0,19 0,25 0,35 0,36 0,52 0,48 0,47 0,45
Canada 0,41 0,39 0,29 0,17 0,11 0,07 0,06 0,06 0,06 0,06 0,06 0,06
Colombia 3,55 2,15 2,01 3,64 3,20 3,00 2,77 3,36 2,70 2,22 0,25 0,44
France 0,49 0,44 0,53 0,48 0,54 0,45 0,55 0,52 0,47 0,48 0,17 0,19
Germany 0,00 0,00 0,00 0,08 0,09 0,07 0,06 0,03 0,03 0,03 0,03 0,03
Greece 1,64 1,77 1,76 1,80 1,79 1,68 1,57 1,67 1,67 1,66 1,63 –
Hungary – – 1,34 1,36 1,26 1,12 1,12 1,03 0,43 0,36 0,27 0,27
Iceland – 0,00 0,71 1,08 1,50 1,31 1,39 0,08 0,03 0,03 0,01 –
Ireland – – – 0,98 1,00 1,05 1,34 0,28 – – – –
Italy 0,00 0,99 0,31 0,75 0,11 0,36 0,12 0,03 0,06 0,05 0,03 0,03
Luxembourg 5,19 5,07 5,53 5,37 5,30 5,50 5,75 6,84 7,02 7,07 7,17 7,43
Norway 1,36 1,36 1,30 1,30 1,33 1,40 1,46 1,18 1,39 1,48 1,46 1,45
Spain 0,79 0,19 0,20 0,20 0,43 0,61 0,54 0,53 0,54 0,55 0,53 0,52
Switzerland 4,41 4,41 4,36 4,17 4,13 4,27 4,43 4,45 4,72 4,71 4,77 4,73
United Kingdom – – – 0,35 0,30 0,41 0,49 0,55 0,48 0,38 0,36 0,34

* OECD statistics 



Three Seas Economic Journal

61

Vol. 2 No. 4, 2021
the first € 30,360 is exempt from taxation; 0.58% is 
taxed on annual income between € 30,361 and 102,010; 
1.34% is taxed on annual income between € 102,011  
and 1,020,096; amounts exceeding € 1,020,096 are  
taxed at a rate of 1.68%. In the Netherlands, in 
addition, property owners pay a standard tax 
onroerendezaakbelasting, which is based on the 
assessed value of the property.

Thus, wealth is a corresponding fiscal interest. Its 
presence in society does not remain outside the fiscal 
interests of the state. The state converts wealth into 
appropriate objects of taxation. In practice, this is 
accomplished by the state imposing a tax on wealth. 

4. Conclusions
Wealth will always accompany the civilization of

society. There will always be a category of rich people 
and a division of society into different strata. This cannot 
be changed or replaced, such a model is irreparable. 

Throughout social progress, economic inequality 
and social stratification have always been present in 
all civilizations, and society has always been divided 
into classes. In all eras the aristocratic classes have 
demonstrated and reaffirmed their socially dominant 
advantages, which were based primarily on property-
wealth, luxury, wealth. 

Wealth, as a socio-economic phenomenon, always 
accompanies the development of society, giving it 
a certain motivational rhythm. It is in the pursuit of 
wealth that a deep social meaning is revealed, which 
gives it a meaningful content. There is a tendency in 
society to acquire possessions and luxuries, to increase 
wealth, to accumulate possessions, to accumulate 
wealth. In this context, the economic component is 
an important factor in establishing the social status of 
individuals. On the basis of the indicator of property 
wealth the corresponding social strata of society are 
formed. 

The economic background is an integral part of social 
loge. The desire to accumulate a variety of property in 
order to increase one’s own well-being is a perfectly 

natural instinct of individuals. Often the economic 
component takes precedence over all other values of 
individuals. In fact, the pursuit of enrichment is limitless 
and unbounded. The amount of property accumulated 
is a certain level of material prosperity and well-being  
of individuals and largely qualifies as wealth of the 
wealthy class. 

There are always people who earn high incomes 
and accumulate considerable wealth. It is advisable to 
increase taxation of the wealthy, which involves using 
progressions for high incomes, imposing taxes on  
luxury and a tax on wealth. 

The wealth tax is a burning issue of modern tax 
reforms. Many countries are still inclined to introduce 
a wealth tax because of its fiscal advantages. Of course, 
there are objectively many people in the category  
of the wealthy. However, the stratum of wealthy people 
with significant financial and property wealth is very 
large. Thus, in theory, a wealth tax could be introduced 
in any country, depending on the fiscal position of the 
state. 

The experience of the wealth tax varies. In each 
situation it has both positive and negative manifestations. 
Despite some negative effects, in most cases the use 
of a wealth tax has been successful. The intention to 
return or introduce a wealth tax in market economies 
clearly confirms its social viability. Based on these and 
other circumstances, it can be argued that the state's 
intentions to impose a wealth tax are well founded. Over 
a long period of evolution, the wealth tax has proven 
to be pragmatic, so its support and introduction is  
obvious. 

The goal of civilization is to live not just in comfort, but 
in an affluent, prosperous, wealthy society. The wealth 
tax functions effectively in the context of implementing 
the principles of the welfare economy, which is based 
on an efficient, rational, and equitable redistribution 
of resources in society. Analyzing the dynamics and  
trends of fiscal practice, one can unequivocally state that 
the state has always initiated attempts to introduce and 
levy certain universal taxes. Such a tax on wealth is one 
of them. 

References:
Abdelnour, Z. K., & Whittaker, W. A. (2012). Economic warfare: secrets of wealth creation in the age of welfare politics. 
Hoboken, N.J.: Wiley. xli, 212 p. 
Adler, M. D. (2019). Measuring social welfare: an introduction. Oxford; New York: Oxford University Press. xiv, 319 p. 
Atkinson, A. B. (1975). The economics of inequality. Oxford: Clarendon Press. xi, 295 p. 
Carter, C. F. (1968). Wealth: an essay on the purposes of economics. London: Watts. vii, 175 p. 
Cheung, S. N. S. (1978). The myth of social cost: a critique of welfare economics and the implications for public policy. 
London: Institute of Economic Affairs. 96 p. 
Cohen, D., Piketty, T., & Saint-Paul, G. (2002). The economics of rising inequalities. Oxford; New York: Oxford 
University Press. xii, 358 p. 
Durán, J. M., Esteller-Moré, A., & Mas-Montserrat, M. (2019). Behavioural responses to the (re)introduction of wealth 
taxes evidence from Spain. Barcelona: Institut d'Economia de Barcelona. 80 p. 
Gornick, J. C., & Jäntti, M. (2013). Income inequality: economic disparities and the middle class in affluent countries. 
Stanford: Stanford University Press. xix, 515 p. 



Three Seas Economic Journal

62

Vol. 2 No. 4, 2021
Hore-Lacy, I. (1985). Creating common wealth: aspects of public theology in economics. Sutherland, N.S.W.: Albatross; 
Tring, Hertfordshire: Lion. 103 p. 
Little, I. M. D. (1950). A critique of welfare economics. Oxford: Clarendon Press. 275 p. 
Londoño-Vélez, J., & Ávila-Mahecha, J. (2021). Enforcing wealth taxes in the developing world: quasi-experimental 
evidence from Colombia. American Economic Review: Insights, 2 (3), 131–148. 
Marriott, J. A. R . (1923). Economics and ethics: a treatise on wealth and life. London: Methuen & Co. Ltd. x, 293 p. 
Mas Montserrat, M. (2020). Essays on wealth taxation, aviodance and evasion among the rich. Barcelona: Universitat 
de Barcelona. 234 p. 
Mols, F., & Jetten, J. (2017). The wealth paradox: economic prosperity and the hardening of attitudes. Cambridge: 
Cambridge University Press. xvi, 222 p. 
Robson, W. A. (1924). The relation of wealth to welfare. London: G. Allen & Unwin. 175 p. 
Scheuer, F., & Slemrod, J. (2021). Taxing our wealth. Journal of Economic Perspectives, 35 (1), 207–230. 
Sleeman, J. F. (1988). The economics of the distribution of income and wealth. Edinburgh: Centre for Theology and 
Public Issues, New College, University of Edinburgh. 32 p. 
Sturtevant, J. M. (1877). Economics: or the science of wealth. New York: G. P. Putnam’s sons. xvii, 343 p. 
Sverdan, M. (2020). Economics and taxation of wealth. Three Seas Economic Journal, 1 (4), 126–132. 
Sverdan, M. (2021). Wealth: the economic prerequisites of taxation. Three Seas Economic Journal, 2 (1), 71–77. 
Vanberg, V. J. (2001). The constitution of markets: essays in political economy. London: Routledge. xv, 207 p.