Too little, too late: The uneasy case for a wealth tax as a means to mitigate inequality

Economic inequality looming large, wealth tax is often applauded as a means to mitigate inequality and to break up large concentrations of wealth. This article argues that the advent of a wealth tax should nevertheless be met with skepticism and questions the suitability of a wealth tax to mitigate inequality. It is argued that a wealth tax does not offer a sustainable contribution to the pressing problem of inequality, because 1) it fails to address the root causes of inequality, which are institutional, and 2) it leaves intact the conditions in the income tax that incited inequality. Instead, it is advisable to put a first break on wealth formation by implementing a comprehensive income tax before resorting to ultima remedia such as a wealth tax.