4. The wealth tax simulator
HOW WOULD YOU TAX WEALTH?
Example: A household owns $90,000. The exemption level is $50,000, and the tax rate is 1% per year. In this case, $40,000 will be taxed at 1%, which makes $400 per year.
CALCULATE5. The result
WHO WINS, WHO LOSES?
The first number displayed shows the tax revenue per capita using the tax parameters you proposed. The second number tells you how much wealth tax you would have to pay yourself. The third number and the graph illustrate what would happen if the wealth tax revenues were distributed equally among all residents.
Example: Suppose the tax exempt amount is set to $50,000 and the tax rate is 1% per year. This policy yields per capita tax revenues of $916 per year. Consider a household owning assets worth $90,000. Then this household receives $916 from the redistribution of tax revenues, and owes taxes of $400 per year. That is a net gain of $516 per year. In this example, the lowest 80% in the distribution of wealth would gain from the proposed policy, while the top 20% would lose.
Per capita tax revenue:
-Taxes you owe:
-Your net gain (or loss):
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