Wealth Tax

Current Wealth Tax in the US and UK
A wealth tax is a charge that is placed on the personal assets that a person owns, based on the market value of those assets.
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Such assets that are subject to the wealth tax include stock certificates, owner-occupied housing, trusts, real property, pension plans, cash, bank deposits, among other assets.

For the wealthy, taxes are not just collected on assets but also on income, just like those with more modest means. In the US, like in the UK, the more money made the more it is taxed.wealth-tax

In theory, therefore, taxes are progressive. (However, it has been found by the centrist Tax Policy Center that households with over $1 million in income paid no taxes at all in 2012).

Tax brackets have increased from only 2%, 15% and 28%, in 1986 to 7%. For Americans who make between $0-$9,075 a year, the tax bracket is 10%.

For those with taxable income between $9,075-36,900 the tax bracket is 15%. Those making $36,900-89,350 a year, the tax bracket is 25%. Those individuals making $89,350-$186,350 a year are in the 28% tax bracket. Individuals making $186,350-$405,100 a year are in the 33% tax bracket. And people who make $405,100-$406,750 per year as individuals, are in the 35% tax bracket. Those making $406,750 or more are in the 39.5% tax bracket.

All the above numbers are for those filing as a single person. For those who are married, filing jointly, the numbers are different. If the taxable income is from $0-$18,150, then tax bracket is at 10%. If the taxable income is from $18,150-73,800, then the tax bracket is 15%. If the taxable income is from $73,800-$148,850, then the tax bracket is 25%. If taxable income is from $148,850-226,850, then the tax bracket is 28%. With income between $226,850-$405,100 then the bracket is 33%. If the income is between $405,100-$457,600, then the bracket is 35%. If taxable income is from $457,600 and up then the tax bracket is 39.6%.

In the UK, the top earners pay 50% of their income in taxes, due to a 2010 change in the tax laws. Assets like real estate can be taxed as well as income. Such taxation can be done for residents of the UK as well as non-residents. According to an economist at Chatham House, DeAnne Julius, the amount of tax that high income people in the UK paid was high compared to those in the US, even before the change in law, as there are less tax loopholes and exemptions in the UK, compared to the US. There are only three tax brackets in the UK. For those making £0-37,400 the tax bracket is at 20%. For those making £37,400-150,000, the tax bracket is at 40% and for those making £150,000 and over the tax bracket is at 50%.