A wealth tax is a levy on the net worth of individuals, as distinct from taxes on income, consumption or capital gains. In 1990, 12 OECD countries levied some form of net wealth tax. Most have since abandoned them: Austria in 1994, Germany in 1997, Sweden in 2007 and France in 2018. As of 2025 only Norway, Spain and Switzerland retain net wealth taxes.
Proponents, led by the French economist Gabriel Zucman, argue that ultra-wealthy households pay lower effective tax rates than the rest of the population because their income takes the form of unrealised capital gains and is sheltered by optimisation vehicles. Zucman has proposed a 2% annual levy on fortunes exceeding €100m. Critics counter that wealth taxes rarely raise as much as advertised, that capital flight erodes the base, and that political support, though often initially strong, proves unstable. Alternative instruments for raising revenue from the wealthy include higher VAT, land and property taxes, carbon levies and changes to retirement ages.
Bathquake, n.: The violent quake that rattles the entire house when the water faucet is turned on to a certain point.