Capital gains tax versus wealth tax
Christian Fahrbach
Lecturer at Leuphana University Lüneburg, Christian Fahrbach, Karrenweg 1, D-21368, Boitze OT Ndf
DOI: https://doi.org/ff.v3i1.8259
Keywords: finance; capital gains tax; wealth tax; tax law; economic crisis; negative interest rates
Abstract
This article provides a financial analysis of capital gains tax and wealth tax and their impact on investors’ decision-making behaviour and corporate finance. First, the capital gains tax is analysed according to current German tax law, revealing a negative impact on firms and the economy. This finding is particularly worrying in an economic crisis, and it highlights the need to consider alternative tax options. A detailed analysis of wealth taxes follows, which shows that a special wealth tax on safe assets represents a promising alternative to current tax practice in view of the ongoing socio-ecological transformation.
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