Explain why a comprehensive wealth tax is equivalent to a tax on the annual return to savings.

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Explain why a comprehensive wealth tax is equivalent to a tax on the annual return to savings. If the annual return to holding wealth is 10 percent, calculate the tax rate on annual savings and investments associated with a 1 percent wealth tax.

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Public Finance A Contemporary Application Of Theory To Policy

ISBN: 9780538754460

10th Edition

Authors: David N Hyman

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Question Posted: Aug 15, 2023 02:30 PM

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Explain why a comprehensive wealth tax is equivalent to a tax on the annual return to savings.

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A comprehensive wealth tax involves taxing an individuals net wealth or assets rather than just their income This type of tax is typically levied as a ...View the full answer

Public Finance A Contemporary Application Of Theory To Policy

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