TAXONOMY OF WEALTH TAXATION LITERATURE: A STUDY OF IMPLEMENTATION, EFFECTS, RESPONSES AND REGULATORY POLICY CONTEXT

Abstract

This paper presents a systematic review of wealth tax literature examining the challenges of wealth taxes for countries that have implemented and repealed them. We comprehensively analyzed 96 papers published in 14 reputable journals from 2000 to 2023. These papers are classified into three primary thematic areas: wealth tax implementation, effects of wealth tax (EWT), and taxpayer behavioral responses (BRT). We find that most countries that have implemented wealth taxes face challenges of accurate valuation of net worth (NW) and assets and high administrative costs (ADCs) due to the high ADCs associated with implementing and enforcing wealth taxes and double taxation. The implication of the results is to enhance understanding of the challenges influencing wealth tax implementation for researchers and policymakers and also bridge historical experiences into the present context, offering practical guidance for the United States of America (USA) states considering wealth tax adoption, thereby supporting their decision-making process.