Capital levy

Capital levy


The Conscientious Burglar.
"Paisley humanitarian". "If I could only be quite sure that I shouldn't be discouraging him from saving."
----"Mr. Asquith has pronounced himself cautiously in favour of a capital levy, on the condition, amongst others, that it must not be allowed to discourage the habit of saving." Cartoon from , February 11, 1920, illustrating part of the dilemma for governments pondering the use of a capital levy.A capital levy is a tax on capital rather than income, and is collected once rather than annually. For example, a capital levy of 30% will see an individual or business with a net worth of $100,000 pay $30,000 in tax, regardless of income. It is considered difficult for a government to implement, as the confiscatory nature of taxation is more apparent than with income tax. Thus once such a levy is enacted, capital flight is likely to ensue.

Some economists argue that capital levies are a disincentive to savings and investment, though others argue that in theory this need not be the case.

References

[http://econpapers.repec.org/paper/cprceprdp/350.htm The Capital Levy in Theory and Practice]


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Look at other dictionaries:

  • capital levy — ➔ levy2 * * * capital levy UK US noun [C] ► TAX CAPITAL TAX(Cf. ↑capital tax) …   Financial and business terms

  • capital levy — n. a tax on individual or corporate capital, sometimes levied in addition to an income tax …   English World dictionary

  • capital levy — n technical a tax on private or industrial wealth that is paid to the government …   Dictionary of contemporary English

  • capital levy — noun a tax on capital or property • Hypernyms: ↑tax, ↑taxation, ↑revenue enhancement • Hyponyms: ↑property tax, ↑land tax * * * noun : a levy on personal or industrial capital in addition to income tax and other taxes …   Useful english dictionary

  • capital levy — a tax based on capital, as distinguished from a tax on income. [1915 20] * * * Direct tax assessed simultaneously on the capital resources of all persons possessing taxable wealth in excess of a minimum value and paid at least partly out of… …   Universalium

  • capital levy — tax paid on capital …   English contemporary dictionary

  • capital levy — noun a tax by means of which the state appropriates a fixed proportion of private wealth …   English new terms dictionary

  • capital levy — noun (C) technical a tax on private or industrial wealth that is paid to the government …   Longman dictionary of contemporary English

  • capital levy — /kæpətl ˈlɛvi / (say kapuhtl levee) noun a tax based on total assets …  

  • capital levy — /ˌkæpɪt(ə)l levi/ noun a tax on the value of a person’s property and possessions …   Marketing dictionary in english

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