What it is:
How it works/Example:
Let's say John Doe makes $100,000 a
An income tax applies to John's of $100,000. Let's say it works out to 14%, which means he pays $14,000 in this year.
If, however, the government applies a wealth tax, then John pays, say, 14%, on his $500,000 of and $400,000 of house every year. That works out to $126,000 -- far higher than income taxes.
Why it matters:
Some countries tax taxes are one example of how governments tax the same over and over again. This could be considered a wealth tax., but many tax . In the United States, are generally -based, though property