An appraisal of a direct wealth tax as a mechanism to reduce financial inequality

Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
With the COVID-19 pandemic leading to increasing questions around wealth inequality, the role that tax reform has in addressing inequality has been a key question. With the slogan “tax the rich” increasing in popularity internationally, wealth tax proposals have been made in developed and developing countries. This study examines the approaches to wealth taxes in different countries that form part of the Organisation for Economic Co-operation and Development (OECD) in order to understand an appropriate wealth tax design. This research aims to analyse the history of tax reform in South Africa by examining the recommendations of the Katz and Davis committees relating to wealth taxes. This report includes an examination of how wealth tax revenues can be used to reduce inequality by analysing the public spending landscape in order to determine whether wealth tax revenues would be appropriately used. The research finds that the adequate design of a wealth tax is theoretically possible, however South Africa has flaws in public spending that need to be corrected prior to increasing the tax burden of taxpayers
Description
A research report submitted In partial fulfillment of the requirements for the degree of Master of Commerce(Accounting (Specialising in taxation)) University of the Witwatersrand, Johannesburg, 2023
Keywords
COVID-19, Tax evasion, Inequality, Wealth tax, OECD, Public Spending, Tax base, UCTD
Citation
Mashishi, Lerato. (2023). An appraisal of a direct wealth tax as a mechanism to reduce financial inequality [Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace. https://hdl.handle.net/10539/38682