2 ms·

How does one pay a wealth tax on an inherited house? Do they have to sell the house?

• crispyporkbites 6y ago
  No you misunderstand- they only pay tax on income, but the % is based on their total wealth. Eg if I have a total net worth of 2mn, my income tax might be 50%, and if I have a total net worth of 0, my income tax could be just 10%. This would encourage people to earn more who have little now, and encourage people who have a lot to spend/scale back their earnings. Ideally it would lower the gap between lower and middle class people.