Wealth tax

The property tax is one of the assets, ie the assessable property of the taxpayer levied tax. It is characterized in general by a relatively low tax rate, and the waiver of tax progression.

Historical development

The wealth tax was invented during the ancient times, it was raised both in the Roman Empire as well as in Athens. In Germany it was until the late Middle Ages, the predominant form of taxation levied on real estate, real assets and financial assets. Only since the 15th century it was particularly complemented by indirect taxes and the first signs of income taxes.

Wealth tax in Germany

In Germany, the wealth tax was a tax matter, the ( gross assets less liabilities ) of the taxable person (natural or legal person ) was calculated from the value of the net assets that existed at a particular date. The wealth tax was last raised in 1996, in that year she had a tax revenue of about 9 billion DM generated. The wealth tax was to the provinces as countries tax.

1995 the Federal Constitutional Court decided that a different tax burden of property and other assets with no property tax with the principle of equality ( Article 3 para 1 GG) is compatible. In the deliberations on the Annual Tax Act 1997, the then Federal Government noted that while that there is no constitutional obligation to abolish the wealth tax, however the wealth tax has since no longer levied with effect from 1997, although the property tax law is still in force.

Taxes on real property levied unchanged in Germany.

For the property tax in the GDR see wealth tax (DDR ).

Property Tax in France

In France, since 1982, a property tax, but only on private property, not on business assets. She has contributed to emigration of wealthy taxpayers in particular to Belgium and Switzerland. From autumn 2012, the property tax by the socialist government Francois Hollande has been greatly increased. The control uses now at a capacity from 800,000 euros, above the threshold was 1.3 million euros.

Other States

In Switzerland ( only at cantonal and municipal level), in Norway and in India there are property taxes, to varying degrees, also in Liechtenstein. In Japan in 1950 property taxes at the municipal level are collected on the basis of a law dating from, but related only to property and depreciable business assets.

Belgium, Lithuania and the United Kingdom also have in their history, no wealth tax. Also in Bulgaria, Estonia, Latvia, Malta, Poland, Portugal, Romania, Slovakia, Slovenia, Czech Republic, Cyprus and Australia exists no general property tax. This also applies to Canada and the United States, even if there individual assets such as land resembling in one of the German Tax manner be taxed.

Ireland ( survey until 1977 ), Austria ( elevation up to 1993), Italy ( collection on the net assets of companies until 1995 ), Denmark ( survey until 1995 ), the Netherlands ( elevation up to 2000 ), Finland ( survey until 2005), Iceland ( survey until 2005), Sweden ( survey in 2006) and Spain ( survey 1977-2007 and limited 2011-2012 ) have abolished property taxes again. In Luxembourg, only existed until 2005 a property tax for natural persons, a tax on the net worth of legal entities will continue to be charged.

In the U.S., the wealth tax has been abolished almost everywhere. Only in some states and counties it is still formal. The entire asset-based tax revenues of the U.S. fed almost exclusively from the U.S. estate tax, which is there in the rest, the second largest individual tax.

Greece launched in 1997 a property tax, which essentially relates, however, only real property and therefore more in line with the German property tax. Hungary introduced with effect from 2010, a property tax on residential property and certain luxury goods. The property tax was not taken on the basis of a judgment of the Constitutional Court.

Asset-related taxes

International, such as the OECD, the property tax ( tax on real property ), motor vehicle tax, tax on business capital, second home tax or dog tax and inheritance tax and gift tax are considered as asset-based taxes.

Germany

This property taxes held in Germany by OECD standards well below average at the Steueraufkommmen. They perform in Germany according to the German Institute for Economic Research, only a rise of 0.9% of GDP. This is almost half of the average of the major industrialized countries.

According to Stefan Bach, Deputy Head of State of the German Institute for Economic Research could asset-based taxes (notably inheritance tax and property tax), which are tailored to particular empires, pay around 15 billion euros a year, without major economic disadvantages for Germany ( capital flight or similar) would arise. That is about 9 billion euros more than raising the top tax rate to 49% (currently 45 %) would from an annual taxable income of 60 000 euro (currently 250 401) provide in addition.

International comparison

In international comparison, Germany and Austria levy, according to OECD figures (2008 ) very small asset-based taxes. In Britain, the charges a high land tax, property taxes, however, amount to about 4% of GDP. Note, however, that in this relatively high percentage also the advent of the British stamp duty on share transactions is included. Assets and gift taxes, however, do not exist in the UK.

The property taxes are mostly to local governments (municipalities, regions). Often these bodies, the tax rates can also set their own.