Question

Explain why a country needs a wealth taxation system (please provide citation for the figures and facts).

Answer 1

ANS) -- Every country need a wealth taxation system.The wealth taxation system means it is the tax on full value of our personal property or valuable things.This will include our total bank deposits, our estates, our different kinds of pension,ownership of buildings and our businesses .

-- For this to be done the officers need the balance sheet of the person who is needed to pay the tax and after that the representative officers will ask for the correct amount of tax according to their asset.The wealth tax is always allowed for the natural persons and in some cases it is expanded to legal persons like the corporations.

-- Some examples are,

In case of canada - Short time ago the British Columbia has imposed a new kind of tax method on the individual home.This tax is added with the normal property tax and it is starting at the houses having the value around 3 million canadian dollars and the tax amount just above the $3 million will be 0.2% and it will be 0.4% for the amount more than that.and they will not be identifying any kinds of lien or tax remaining to pay.

In case of Italy- There were 2 kind of wealth taxes.One of it is IVIE they are charging 0.75% tax on the property outside the Italy.The worth of that property are known by the present market value. The next type of tax is IVAFE which is charging 0.15% of tax and which is charging on every financial assets which is out of the country.

In the case of spain- The tax in the spain is called patrimonio.This tax was very famous in spain .The tax rate is starting from 0.2 to 3.75% of the total property over the threshold of 7000,000 euro succeeding 300,000 primary accomodation allocation.And this tax amount will be different for different regions and territory.

** The taxes are very important for a country because if there is no tax then the government will not be able to do the demands of the society.The government will use this tax amount for doing many social projects.These projects include,

-- The government give this tax amount as a contribution for many health services and medical researches.

-- All country governments are giving a big importance for education of people.so this tax amount used for maintenance and development of education systems.

-- The government also use this fund for the security, environmental protection and also scientific researches.

THANKS...............