Taxing High-Net-Worth Individuals

Some countries have enacted wealth taxes, and others are considering enacting similar (temporary or not) taxes to respond to the COVID-pandemic.

The COVID crises exposed governments’ lack of budget for emergencies. 

Aligned to that, governments did not expect a long-term crisis.

Also, governments demonstrated a slow capacity in increasing revenue for their immediate need. 

Most of the recently enacted wealth taxes did not follow an “accumulation tax rule” nor the time the asset is owned by an individual. Senior generations who have lifetime savings in assets may be tremendously exposed.