Pitfalls of Implementing a Wealth Tax

Although a wealth tax was considered by the government, there were significant challenges associated with its implementation. One major concern was the mobility of wealth, as introducing a wealth tax in New Zealand while other countries didn't have it could lead to wealth leaving the country. There were also issues of scope and fairness, particularly when taxing assets that had been accumulated over multiple generations. Additionally, the idea of a land tax on residential land values was proposed, but it faced valuation complexities and opposition. The podcast concludes that the chances of enacting a wealth tax or capital gains tax in the next decade seem unlikely.